International Monetary Fund warns of ‘irreversible’ fallout from Lebanon collapse

The International Monetary Fund warns in a report that Lebanon’s failure to implement reforms could have “irreversible” consequences for the crisis-hit country and risks jeopardizing economic and social stability.

Lebanon has been mired since 2019 in an economic collapse that has seen the local currency lose around 98 percent of its value against the dollar and impoverished most of the population.

In April 2022, Lebanon and the IMF reached a conditional agreement on a $3-billion-dollar loan needed to save the economy, but officials have yet to enact the substantial changes required to kickstart the 46-month financing program.

“The continuation of the status quo presents the largest risk to Lebanon’s economic and social stability, taking the country down an unpredictable road,” the IMF says in a report.

“Without reforms, the economy will remain depressed with irreversible consequences for the country,” it says.