Lebanon's economy minister asks for patience in implementing reforms

Lebanon's new government is committed to implementing key reforms to lift the country out of its economic crisis, but the nation's new economy minister said such changes could take time. “Lebanon is in a fairly complex situation, and we know it's a long road ahead, and we know there's a lot that needs to be done, and … it's not going to be done overnight. We understand what needs to be done,” Amer Bisat told The National on Tuesday. The new government has implemented several reforms since forming earlier this year, but the International Monetary Fund has said more are needed. Among top priorities are depositor protection and banking resolution . This week, Mr Bisat is part of a Lebanese delegation in Washington for the 2025 IMF and World Bank Spring Meetings to demonstrate Beirut's commitment to growth and reform. Lebanon is seeking a new programme with the IMF , one which Mr Bisat described as a “a purely Lebanese government programme”. “This is not about going out there and asking for people to tell us what to do. This is we are here to explain what we want to do,” he said. Mr Bisat said the delegation has three messages this week: one of unity and commitment to reform, holding discussions with the fund and international partners on the country's programme, and a “message of realism”. “Everybody in the government is committed to reform, and the objective is growth,” he said. “We understand it's complicated, and it's going to take a while.” Lebanon has been mired in economic crisis since 2019, exacerbated by last year's war between Hezbollah and Israel. The World Bank estimates Lebanon's reconstruction and recovery efforts will cost $11 billion. “Lebanon has no business being where it is,” Mr Bisat said. The election of Joseph Aoun as the Lebanese President earlier this year ended a power vacuum that had existed since 2022, and his appointment of Nawaf Salam as Prime Minister boosted hopes that the country could resolve its protracted crisis. Mr Bisat, a former BlackRock executive, was appointed as minister for economy and trade in February. This week's gatherings come about a month after the IMF staff conducted a fact-finding mission to Beirut, where it held discussions with Mr Aoun, Mr Salam and other officials. It is “too early” to guess how much money Lebanon will request from the IMF, Mr Bisat said. Lebanon reached an agreement with the IMF in 2022 that would unlock about $3 billion in funding contingent on required reforms that Beirut did not meet. Mr Bisat said he expects discussions with the fund to continue over the next few weeks or months. Discussions are expected to focus on monetary policy, public finance, financial markets, the banking sector, depositors and electricity infrastructure. Key among those reforms is the restructuring of the banking sector. The country's economic collapse in 2019 was blamed on decades of financial mismanagement, and changes to the banking sector are seen as a crucial step towards Lebanon securing economic assistance from international partners. Mr Bisat reiterated his pledge to ensure depositors receive their funds which are frozen in the country's banks. Depositors have been waiting for their funds to be released for years. He anticipated three steps: removing bank secrecy, establishing a bank resolution framework and following through with the enforcement of resolutions. Lebanon is currently waiting for a law to be passed in the parliament that would lift bank secrecy. “It's going to take a while … but we're cautiously optimistic,” Mr Bisat said, adding that these reforms are “extremely important” to rebuilding foreign investors' confidence. He anticipates this renewed confidence would help patriate its labour force, bring in investments and help establish long-term planning. “Confidence is extremely important to get Lebanon back to where it should be. Lebanon has no business being where it is,” Mr Bisat said. Like much of the world, US President Donald Trump's tariffs are expected to have some effect on Lebanon's economy. Lebanon's exports to the US in 2023 were totalled at $194 million, relatively small compared to America's main trade partners, meaning the direct result of the new tariffs on Beirut will likely be minimal. At $194 million, Lebanon's exports to the US are relatively small compared to America's main trade partners, meaning the direct result of the new tariffs on Beirut will likely be minimal. “However, the indirect impact will be quite significant,” Mr Bisat said, pointing to the country's diaspora and a global downturn's impact on oil prices. New forecasts from the IMF this week anticipate the global economy to slow from a 3.3 per cent pace last year to 2.8 per cent this year. The fund also raised its recession probability, although one is not currently in its forecast. Still, he hope's the country's geographical location and human capital could benefit Lebanon in the global trade reset. “Whenever you get these major shifts in trade relations of the kind that we're seeing right now, there is always winners and there are always losers. We like to believe that we could be part of the winners,” Mr Bisat said. He believes Lebanon is well-positioned as a near-shoring destination for European producers which could be more directly impacted by the tariffs. “It's a double-edged sword. We could be hurt by a recession … but we could benefit from the rerouting of the supply chain.”

Lebanon's economy minister asks for patience in implementing reforms

Amer Bisat says 'it's a long road ahead', as he reaffirms commitment to depositors