Diab: Govt. Will Seek IMF Assistance, Over $10 Billion in Foreign Aid

Prime Minister Hassan Diab said on Thursday that his government will go ahead and seek financial assistance from the International Monetary Fund based on an economic and financial reform plan approved earlier in the day.

In an address to the nation, Diab described the plan adopted unanimously by the Cabinet as a comprehensive "roadmap" for dealing with the country's spiraling financial crisis, the worst since the 1975-90 civil war.

"Today, I can say that we are going the right way to pull Lebanon out of its deep financial crisis," he said.

International donors have long demanded that Lebanon institute major economic changes and anti-corruption measures to unlock billions in pledges made in 2018.

"We want contributions from the fancy interests that were paid, from those who reaped profit from financial engineering operations and from those who violated the law and stole pubic funds," Diab said.

"The plan will restructure the banking and financial sectors..., decrease the current account deficit to 5.6 percent and achieve a return to positive growth as of 2022," he added.

Noting that the government will seek "more than $10 billion in foreign aid," Diab said the plan calls for "the instant implementation of the long-awaited reforms."

"I call on all Lebanese to consider today a turning point for the future of our country," he said.

"The central bank must address the spike in the US dollar exchange rate, because it is responsible for the national currency's stability," Diab suggested.

He noted that "the country's problem lies in the fact that corruption is a state within a state."

The premier added that the five-year plan will reform "the state's administration, the financial policy, the financial sector, the central bank, the current account and the balance of payments."

The plan will "allow the economy to recover, provide good and sustainable job opportunities and launch very promising economic sectors that befit the high capabilities of the Lebanese," Diab promised.

"The plan aims to protect the funds of depositors and strengthen and restructure banks so that they can secure people's money and the essential services for the economy. The central bank will then focus on its main mission, which is to protect economic, financial and monetary stability," the PM went on to say.

The plan also promises assistance for the needy and aims to restore an initial budget surplus by 2024, structuring the sovereign debt portfolio and reducing the ratio of public debt to GDP to less than 100 % from the current 170%.

"The road ahead will not be easy, but our determination and optimism will help us overcome our difficulties as we look to better days ahead. If we all unite, we will definitely reach the desired success in the future," Diab said.