The IMF and World Bank are exploring conditions for aiding Lebanon’s reconstruction by tying funds to normalization with Israel and disarmament of Hezbollah. This follows political discussions involving the US and significant financial needs for rebuilding after recent Israeli aggression. Lebanon requires up to $7 billion, with Hezbollah already financing considerable restoration efforts.
The International Monetary Fund (IMF) and the World Bank are reportedly considering linking their reconstruction aid to Lebanon with the normalization of relations between Lebanon and Israel, as well as the disarmament of Hezbollah. According to a report by Al Akhbar, IMF head Kristalina Georgieva conveyed to Lebanon’s acting central bank governor, Wassim Mansouri, that access to international funds will depend on specific timed actions and objectives.
This development follows comments from US Special Envoy to the Middle East, Steve Witkoff, suggesting that Lebanon and Syria might be included in normalization agreements facilitated by former President Donald Trump during his initial term. The Lebanese Finance Minister, Yassin Jaber, recently disclosed that the World Bank has formulated a preliminary plan for a $1 billion reconstruction initiative in response to the recent conflict with Israel.
The report indicated that the World Bank is prepared to approve funding at its Executive Board meeting on March 25, contingent upon Lebanon enacting politically and financially necessary reforms. Additionally, the European Union has mandated a restructuring of Lebanon’s banking system as a prerequisite for the release of €500 million in aid.
Current estimates indicate that Lebanon requires approximately $6-7 billion to restore infrastructure and clear debris from Israeli assaults. Hezbollah has reportedly been a significant contributor to aid, allocating around $650 million for reconstruction efforts in southern Lebanon, emphasizing their commitment to rebuild.
Despite the ongoing challenges, including intimidation and violations of ceasefire by Israel, some residents are returning to their devastated homes. Following the conflict that escalated on October 7, 2023, Hezbollah engaged in considerable retaliation, prompting Israel to agree to a ceasefire on November 27, 2024, after incurring substantial losses.
The IMF and World Bank’s potential linkage of aid for Lebanon to political normalization with Israel and the disarmament of Hezbollah highlights the complex geopolitical dynamics in the region. As Lebanon seeks substantial funds for reconstruction post-conflict, the demand for reforms underscores the international community’s influence over local governance. Hezbollah’s role in providing financial assistance reflects its continued prominence in Lebanese society amid adversity.
Original Source: www.presstv.ir
