As U.S. Deputy Special Envoy for the Middle East Morgan Ortagus wrapped up her visit to Beirut this week, attention shifted to whether Lebanon can meet critical reform benchmarks ahead of the International Monetary Fund’s Spring Meetings in Washington on April 21.

With less than two weeks remaining before this key international deadline, LBCI reported that Lebanese authorities are under growing pressure to deliver on a set of long-delayed financial and administrative reforms that could unlock much-needed foreign assistance. According to officials familiar with the discussions, the government must bring three core legislative and regulatory actions to the table.

The first step involves amending Lebanon’s banking secrecy law, which has long been cited as a barrier to transparency and accountability in the country’s financial sector. A draft law, approved by the Cabinet in March, proposes to scale back banking secrecy retroactively over the past 10 years. It has since been forwarded to Parliament for debate and approval.

The second measure relates to the long-pending appointments to the Council for Development and Reconstruction (CDR), an influential government agency responsible for infrastructure and development projects. Officials say the appointments are expected to be confirmed during an upcoming Cabinet session.

But it is the third and most contentious step—banking sector restructuring—that is proving the most difficult. A reform bill under discussion would classify banks based on their financial health, allowing only viable institutions to recapitalize and continue operations, while others would be wound down.

The IMF has agreed to defer debate on the thorny issue of financial sector losses and the eventual return of deposits to customers until after the April 21 deadline, citing the complexity of the matter and the need for further study.

The draft banking law is slated for Cabinet review on Tuesday. However, sources familiar with the negotiations described the process as "far from smooth," with numerous ministers raising red flags. Among their concerns: how can viability assessments be made without a clear picture of sector-wide losses? Why grant extensive authority to the Banking Control Commission—an entity embedded within the banking establishment—instead of assigning oversight to an independent body?

Even if the Cabinet clears these legislative hurdles, challenges remain on the political front. Past experience—most notably the collapse of Lebanon’s initial IMF agreement in 2022—has raised fears that political infighting between the Cabinet and Parliament could once again derail progress.

According to senior government sources, Ortagus made clear to Lebanese officials during her visit that the international community is not concerned with the minutiae of legal drafting or technical adjustments. Instead, global stakeholders will judge Lebanon’s commitment based on its broader willingness to cooperate and deliver reforms.

“The world is watching Lebanon’s intent and its capacity to work as a functioning state,” one source said. “This time, there will be little patience for delay or deflection.”