IMF and World Bank Conditional Aid to Lebanon Linked to Normalization with Israel
The IMF and World Bank are conditioning reconstruction aid for Lebanon on the normalization of relations with Israel and Hezbollah’s disarmament. Lebanese officials have indicated that substantial financial support is contingent upon implementing specific political and financial reforms. Amidst ongoing conflicts, Hezbollah has made significant contributions toward reconstruction efforts, and some residents are returning to their homes despite challenges.
The International Monetary Fund (IMF) and the World Bank are reportedly linking their reconstruction aid for Lebanon to two critical conditions: the normalization of relations with Israel and the disarmament of Hezbollah. In recent discussions with Lebanon’s central bank acting governor, Wassim Mansouri, IMF chief Kristalina Georgieva emphasized that Lebanon’s access to these financial resources would adhere to a timeline and specific objectives.
Sources indicate that these prerequisites align with anticipated political pressures advocating for normalization and disarmament. This news follows speculation from U.S. Special Envoy Steve Witkoff that Lebanon and Syria may be incorporated into the normalization agreements previously established by President Donald Trump with several Arab nations.
Furthermore, Lebanese Finance Minister Yassin Jaber revealed that the World Bank has drafted a preliminary plan for a $1 billion reconstruction initiative following the recent conflict with Israel. The World Bank’s board is set to approve this funding on March 25, contingent upon Lebanon implementing the required financial and political reforms mandated by Western powers.
The European Union has similarly conditioned its €500 million aid to Lebanon on necessary banking system restructurings to minimize refugee outflows into Europe. Current estimates suggest that Lebanon requires approximately $6-7 billion for infrastructure rebuilding and debris removal due to Israeli actions, with Hezbollah contributing significantly to efforts, reportedly allocating around $650 million for restoration tasks.
Despite ongoing Israeli ceasefire violations, some residents of southern Lebanon have begun returning to their homes, assisted by Hezbollah’s efforts to support Palestinians in Gaza following the resurgence of conflict on October 7, 2023. Following intense military engagements, Israel was compelled to agree to a ceasefire with Hezbollah on November 27, 2024, after suffering considerable losses.
The IMF and World Bank’s decision to tie aid to Lebanon’s political reforms includes the normalization with Israel and Hezbollah’s disarmament. As both international bodies plan substantial funding for Lebanon, they aim to ensure compliance with Western reform demands. The ongoing conflict continues to reshape the humanitarian landscape in Lebanon, necessitating significant international assistance for the country’s recovery.
Original Source: www.presstv.ir
