The European Union welcomes the announcement of a staff-level agreement between Lebanon and the International Monetary Fund (IMF) saying that it is "a key step towards an inclusive and reforms-based economic recovery programme," the EU delegation to Lebanon said.

"We stand ready to support," the delegation added in a tweet.

IMF said on Thursday it had reached a draft funding agreement with Lebanon, but that Beirut needed to enact a batch of economic reforms first before its board decided whether to approve the deal.