A broad internal consensus is emerging, covering both political and economic dimensions, to adopt the principles outlined in the presidential inauguration speech as the basis for the new government’s program and ministerial statement. This strategy aims to sustain Lebanon's immediate positive momentum, which is supported by widespread backing at both the Arab and international levels.

Economic bodies and professional unions representing various business sectors have openly expressed their relief and full support for the strategic directions set by President Joseph Aoun following his election. However, they have made it clear that maintaining this positive momentum hinges on the formation of a reform-driven rescue government, consisting of competent, experienced, and honest ministers who will also collaborate constructively with the president.

According to a senior financial official, the rescue mission will be challenging due to years of governmental inaction and constitutional voids, which led to the deterioration of public sector operations and the accumulation of economic, financial, and monetary crises over the past five years. These challenges were further exacerbated by a devastating war, resulting in severe human and financial losses estimated at around $10 billion, worsening the country’s financial gap, which is now estimated at $72 billion.

Economic and banking circles are looking to the new government to swiftly capitalize on extensive international support by restoring trust and reestablishing financial channels between Lebanon and its regional and international partners. Key to this effort will be clear and transparent commitments to combat illegal economic activities, corruption, smuggling, money laundering, and drug trafficking. At the same time, the government must prioritize strengthening judicial independence and implementing strict controls over land, sea, and air borders.

The national consensus seen in the presidential election, according to Mohammad Choucair, head of Lebanon’s economic associations, paves the way for constructive collaboration among political factions. This collaboration is vital for addressing challenges, rebuilding the state, and benefiting from renewed international and Arab—particularly Gulf and Saudi—interest in Lebanon. Choucair stressed the importance of normalizing relations with Gulf nations, supporting Lebanon’s recovery, and securing resources for reconstruction efforts.

One of the new government’s urgent tasks, according to the financial official, is revisiting the draft 2024 state budget, which was previously submitted to parliament. Adjustments are needed to address fundamental discrepancies in expenditure and revenue projections, taking into account the significant changes caused by the Israeli war.

Ibrahim Kanaan, chairman of the Parliamentary Finance Committee, described the budget as “unrealistic, if not entirely fictitious,” especially with regard to its revenue estimates. He pointed out that the projected revenue increases were based on income and capital taxes, internal duties, and trade-related fees, all of which have been severely impacted by the war.

Another pressing issue is reassuring depositors, both domestic and expatriate, who have suffered massive losses in recent years. These losses were exacerbated by the inability of successive governments to implement a comprehensive rescue plan that fairly addresses the $72 billion financial gap. The situation was worsened by mismanagement in the electricity sector and the squandering of over $20 billion in central bank reserves after the onset of the financial crisis.

In response to Aoun’s commitment to a fair resolution for depositors, the Association of Banks in Lebanon welcomed his emphasis on protecting deposits. It also expressed its readiness to work with the central bank and the government to safeguard depositors’ rights, citing a recent State Council ruling that prohibits any financial recovery plans from including measures that would erode depositors’ funds.

In its final session, the caretaker government addressed long-standing creditor issues by unanimously agreeing to suspend Lebanon’s right to invoke statutes of limitations on claims by foreign bondholders under New York law. This suspension, effective until March 9, 2028, aims to facilitate future negotiations.

With this decision, the caretaker government tacitly acknowledged Lebanon’s pending debt obligations, including over $10 billion in suspended interest payments on Eurobonds and approximately $30 billion in principal debt. The resolution now awaits direct negotiations under the new administration, which faces the challenge of resolving a nearly five-year-old crisis triggered by the previous government’s uncoordinated decision to halt payments on all Eurobond obligations through 2037.

Caretaker Finance Minister Youssef Khalil emphasized that despite the difficult circumstances, “Lebanon remains committed to reaching a fair and consensual resolution regarding the restructuring of Eurobond debt.”