Lebanese Govt Clears Plan To Rescue Debt-Ridden Economy

Prime minister says reform plan would be used to apply for an IMF programme to help the economy through an acute crisis that could last up to five years

The Lebanese government on Thursday approved a long-awaited plan to rescue the debt-saddled economy from its worst crisis in decades, following a fresh wave of angry streets protests.

Lebanese Prime Minister Hassan Diab said a reform programme approved by government on Thursday would be used to apply for an IMF programme to help the economy through an acute crisis that could last up to five years.

“We will use this ... to apply for an IMF programme in light of which there will be negotiations,” he said.

“If we get (IMF support), and God willing we will, it will help us to pass through this difficult economic phase which could be three, four or five years,” Diab said.

“The amount (the IMF will give) is up to negotiations,” he said, speaking to reporters after a cabinet session.

A lockdown to fight the coronavirus pandemic has added to the economic woes besetting the country, which include soaring inflation, a liquidity crunch and a plummeting currency.