Pierre Duquesne speaks with Public Works and Transport Minister Ali Hamie. (Credit: NNA)
BEIRUT – The French ambassador in charge of coordinating international support to Lebanon, Pierre Duquesne, urged Tuesday that the country sign an agreement with the International Monetary Fund before next year’s parliamentary elections. Duquesne's call came during a meeting with Public Works and Transport Minister Ali Hamie, L’Orient Today’s correspondent Hoda Chedid reported.
Here’s what we know:
• Duquesne described the potential accord between Lebanon and the IMF as the country’s “last resort,” highlighting that its signature would pave the way to accessing financing from the CEDRE conference’s $11 billion alloted for infrastructure and development projects.
• However, Hamie considered that the accord “would be part of the solution, but not the solution in its entirety” and expressed doubts over the feasibility of signing before the parliamentary elections due to the “political circumstances” of the country, L’Orient Today’s correspondent reported.
• The 2018 CEDRE conference regrouped actors from the international community that vowed to finance projects aimed at modernizing Lebanon’s economy, with initial priorities set on water and electric utilities and waste management. Access to the funding depends on Lebanon’s ability to enact reforms, chiefly in the electricity sector, the government’s adherence to budgets that reduce the public deficit and the implementation of anti-corruption measures.
• Lebanon relaunched negotiations with the IMF following the formation of Premier Najib Mikati’s cabinet in September after they had been interrupted by a disagreement between the international organization and Lebanon’s central bank over their respective estimates of the country’s financial losses.