IMF and World Bank Condition Aid for Lebanon on Normalization with Israel and Disarmament of Hezbollah

The IMF and World Bank are reportedly conditioning reconstruction aid to Lebanon on the normalization of relations with Israel and Hezbollah disarmament. This follows discussions about political pressures from the West and plans for a $1 billion reconstruction project. The EU has also tied its aid to banking reforms. Hezbollah is funding immediate restoration efforts amidst significant infrastructural damage caused by Israeli military actions.

The International Monetary Fund (IMF) and the World Bank are reportedly conditionally linking reconstruction assistance to Lebanon with both the normalization of diplomatic relations with Israel and the disarmament of Hezbollah. According to the Beirut-based newspaper Al Akhbar, IMF chief Kristalina Georgieva communicated to Lebanon’s acting central bank governor, Wassim Mansouri, that international funding would hinge on specific reform steps that must be executed within a designated timeframe.

The report suggests that these requirements align with anticipated political pressures focused on “normalization” and “disarmament.” This development follows comments from U.S. Special Envoy to the Middle East, Steve Witkoff, who speculated about the potential for Lebanon and Syria to participate in normalization agreements that former President Donald Trump had secured with several Arab nations.

Moreover, Lebanese Finance Minister Yassin Jaber indicated earlier this month that the World Bank has devised a preliminary plan for a reconstruction initiative valued at $1 billion, following damages inflicted by a recent Israeli military campaign. The funding is set to be discussed during the World Bank’s Executive Board meeting scheduled for March 25, contingent on Lebanon implementing the proposed financial and political reforms demanded by Western authorities.

The European Union has already conditioned its financial contributions to Lebanon on restructuring the country’s banking system, delaying the disbursement of €500 million that forms part of a 2024 agreement between Brussels and Beirut designed to manage refugee flows into Europe. Recent estimates suggest Lebanon requires between $6 billion to $7 billion to restore its infrastructure and clear debris resulting from the Israeli offensive.

Hezbollah has taken the initiative to finance reconstruction efforts, having reportedly committed around $650 million for housing projects and restoration activities in southern Beirut and other affected areas of Lebanon. Reports indicate that communities in some southern villages are starting to return to their devastated homes, despite ongoing threats and frequent ceasefire violations from Israeli forces.

In the wake of Israel’s extensive military actions against the Gaza Strip, which commenced on October 7, 2023, Hezbollah has opened a support front for the Palestinian factions. Following significant losses, Israel agreed to a ceasefire with Hezbollah on November 27, 2024, unable to fulfill its objectives while inflicting substantial casualties, with more than 4,000 fatalities reported in Lebanon alone.

In conclusion, the IMF and World Bank are strategically linking financial support for Lebanon to political conditions related to Israel and Hezbollah. This approach reflects the ongoing complexities of Middle Eastern geopolitics, with significant implications for Lebanon’s recovery and international relations. As funds become contingent upon reforms, the path to reconstruction remains fraught with challenges, necessitating careful navigation of both domestic and foreign pressures.

Original Source: www.presstv.ir