IMF and World Bank Condition Aid for Lebanon on Israel Normalization and Hezbollah Disarmament
The IMF and World Bank are conditioning reconstruction aid to Lebanon on two key factors: establishing relations with Israel and disarming Hezbollah. Financial assistance is bound by necessary reforms and political actions, amid an ongoing humanitarian crisis resulting from conflict. Hezbollah has provided substantial financial support for rebuilding efforts as residents begin returning to their homes despite several challenges.
The International Monetary Fund (IMF) and the World Bank are reportedly tying their reconstruction aid for Lebanon to two conditions: the country’s normalization of relations with Israel and the disarmament of Hezbollah. According to Al Akhbar, IMF chief Kristalina Georgieva conveyed to Lebanon’s central bank acting governor, Wassim Mansouri, that Lebanon’s access to international funding would depend on specific actions within a set timeframe.
The Al Akhbar report indicates that the required actions align with anticipated political pressure surrounding normalization efforts and disarmament. This follows speculation from U.S. Special Envoy Steve Witkoff regarding the potential inclusion of Lebanon and Syria in normalization agreements previously established by U.S. President Donald Trump.
Lebanese Finance Minister Yassin Jaber announced that the World Bank has formulated a preliminary plan for a $1 billion reconstruction project following significant destruction inflicted by Israel. Approval for this fund is contingent upon Lebanon undertaking financial and political reforms as demanded by Western powers, with a meeting of the World Bank’s Executive Board scheduled for March 25.
The European Union has also made financial assistance contingent upon the restructuring of Lebanon’s banking system, delaying the release of €500 million in aid related to a 2024 agreement aimed at mitigating the refugee influx into Europe. Estimates suggest that Lebanon requires $6-7 billion to restore its damaged infrastructure, with Hezbollah reportedly contributing approximately $650 million for housing and restoration efforts in southern Lebanon.
Despite ongoing threats and ceasefire violations by Israel, residents in some southern Lebanese villages have begun returning to their devastated homes. This return occurred after Hezbollah initiated support operations for Palestinians amid Israel’s ongoing aggression, notably following a major escalation beginning on October 7, 2023. Israel ultimately accepted a ceasefire with Hezbollah on November 27, 2024, after sustaining considerable losses.
In summary, the IMF and World Bank are linking reconstruction funds for Lebanon to the normalization of its relations with Israel and the disarmament of Hezbollah. This requirement is set against the backdrop of political pressures and anticipated reforms needed for access to significant financial aid. The ongoing conflict and the humanitarian situation compel both domestic and international stakeholders to navigate complex political landscapes effectively.
Original Source: www.presstv.ir
