Lebanon is embroiled in an economic crisis dubbed “one of the worst in modern history” by the World Bank, yet officials have yet to reach an international bailout agreement.
Lebanon defaulted on its debt last year, as a result of the financial catastrophe that began in 2019.
Politicians have failed to adopt meaningful reforms to save the Mediterranean country, and many blame the catastrophe on the ruling elite and central bank practices.
What is delaying progress on talks with the International Monetary Fund (IMF) to strike a deal and unlock crucial donor funds?
Lebanon’s GDP has dropped from $55 billion in 2018 to $20.5 billion in 2021, a “brutal contraction” that the World Bank says is “typically associated with crises or wars.”
Negotiations with the IMF began in May 2020, but they stalled after two months due to disagreements about the size of financial losses.
After the inauguration of a new government led by Prime Minister Najib Mikati, talks restarted in September of this year.
Officials from Lebanon have yet to present a bargaining proposal.
