An International Monetary Fund (IMF) mission concluded a visit to Lebanon on Thursday after holding discussions with Lebanese authorities on a long-stalled economic reform program, signaling early but cautious progress toward a potential IMF-supported arrangement.

The visit, which took place from May 28 to June 5 at the Lebanese authorities' request, was led by Ernesto Ramirez Rigo. At the end of the mission, Ramirez Rigo issued a statement outlining the scope and tone of the discussions.

“The IMF mission held productive discussions with the Lebanese authorities on a comprehensive economic reform program aimed at restoring macroeconomic sustainability and supporting financing for reconstruction,” he said.

According to the statement, the initial talks covered six critical areas of reform: restoring the viability of the banking sector while protecting depositors "to the maximum extent possible"; achieving fiscal and debt sustainability; establishing credible monetary and exchange rate policies; strengthening governance and transparency; enhancing anti-money laundering and counter-terrorism financing measures; and reforming state-owned enterprises.

Ramirez Rigo emphasized that rebuilding the banking system is a top priority.

“Rehabilitating the banking system is critical to rebuilding confidence, ending the cash-based economy, and reviving credit to the private sector—an essential component for growth,” he said.

He acknowledged recent steps by the Lebanese authorities, including the amendment of the Bank Secrecy Law and the submission of a new bank resolution law to Parliament.

“The next step is for Parliament to approve this legislation, which will establish powers to underpin the recovery of orderly banking intermediation, while safeguarding the public interest.”

The IMF team also discussed Lebanon’s evolving strategy for bank restructuring and deposit recovery.

“More work in close cooperation with the authorities will be needed to ensure this strategy is aligned with international standards and debt sustainability requirements,” the statement read.

On the fiscal front, discussions focused on the 2026 budget and the development of a medium-term fiscal framework.

“For the 2026 Budget, given the limited fiscal space and available financing, it is critical that any additional expenditures be fully offset by corresponding revenue efforts, including by strengthening enforcement and compliance in tax and customs administration,” Ramirez Rigo noted.

The Fund called for an “ambitious medium-term revenue mobilization and expenditure rationalization strategy” alongside improved fiscal transparency and public financial management. These measures are seen as necessary to “strengthen public finances and create space for increased social protection and capital expenditures.”

The IMF also underlined that Lebanon's medium-term framework must support the restructuring of Eurobond debt to restore debt sustainability.

“Given Lebanon’s substantial reconstruction needs, the authorities’ reform efforts will require significant support from external partners, preferably on highly concessional terms,” the statement said. “Enhanced support to Lebanon is also needed to help the country shoulder the continued burden of hosting a large refugee population.”

The IMF mission stated that these discussions are only the beginning and will continue both through follow-up visits and from IMF headquarters.

“Building on these key reform pillars, discussions on formulating a comprehensive reform program are expected to continue,” Ramirez Rigo said, adding that “the mission reaffirmed the Fund’s commitment to supporting Lebanon during this challenging period, consistent with its mandate and policies.”

“The mission thanks the Lebanese authorities and all stakeholders for their cooperation and constructive engagement," the statement concluded.