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The meeting began with a speech by President Diab in which he said: “I am pleased to welcome you today, after the Lebanese government approved the financial recovery plan, which I subsequently sent a request to the International Monetary Fund, with the Minister of Finance , to start negotiations and speed up the preparation of a detailed program to lift Lebanon out of the difficult situation. ” People who suffer a lot suffer from it. It is no secret to you that Lebanese are deprived of access to their deposits, and face a huge rise in the value of the dollar on the parallel market, leading to the erosion of their wealth. They demand the elimination of corruption, more effective public services, a good business environment, and they hope to take them to the future. The prospect has better days. For its part, the government listens to their voices and we are committed to undertaking the necessary reforms as soon as possible. “
He added: “The choice before us was very simple, whether it be to continue with the same approach and see the financial sector collapse before our eyes, sweep away the money of our people and dismiss their hopes that the country can recover from these great losses. , or work together and develop an action plan backed by the vast majority. ” “This is because strong support for reforms is crucial internally, but also when dealing with international institutions and bilateral friends. Therefore, my government immediately decided to accelerate the preparation of a financial recovery plan that would be a milestone in the road to recovery. “
He continued: “The government’s plan provides a clear diagnosis of the situation, and has been publicly embraced by multilateral partners and many bilateral partners. It was also praised by many private financial institutions around the world, given the seriousness of the diagnosis they provide , which would provoke strong reactions. However, due to its very daring proposal, it is clear that the voices raised did not question the validity of the results. The plan also includes long-awaited structural and financial reforms, in addition to new proposals that have emerged In light of recent developments, the plan aims to provide Lebanese with a new path of growth supported by working on Loss Reduction and Protection of Lebanon m Possible future shocks, while securing necessary funding and engaging in a productive economy that guarantees luxury and good jobs. It also emphasizes the i Importance of establishing strong safety nets in the short term to ease the burden of the crisis that burdens the poor and the unemployed. The plan also takes into account financial needs, social requirements, the economy and currency, and important structural issues that will provide a better working environment. “
He added: “Of course, the financial recovery plan remains just a plan. All parties at the cabinet table participated in its preparation to try to get the most support possible. You know, the consensus comes at a price, and we know that in the future we must negotiate the details, We have not managed to reduce this price as much as possible. Our plan contains many elements that have been stuck for a long time, because we have not hesitated to take what was already in place and provide you with the new ones. initiatives put forward by our ministers. This would increase popular and political engagement with our program. Others, the plan remains just an abstraction, unless we seem to By implementing its various components as quickly as possible, and now I am announcing that I have asked everyone ministers preparing texts and projects related to each element of the plan in the coming weeks, and we will seek to approve the majority of the comp Even before the agreement that we can conclude with the International Monetary Fund, as we realize that it will be essential to obtain the greatest possible support for Lebanon. The plan has already achieved its goal and it is time to implement it. “
He said: “Excellencies, ladies and gentlemen, Lebanon is in a critical situation and urgently needs its friends, now more than ever. In this regard, we look forward to your active participation on the boards of directors of international institutions to support our efforts. We only ask to deal fairly with A country facing many simultaneous devastating crises, in addition to being the largest refugee host country by population, facing the repercussions of the Covid-19 virus. We appreciate your suggestions and accept that you do business with us based on the scale of achievements that we will undertake in terms of reforms, but we need your commitment to ensure the adequate amount of funds to enable us to cope with the crises b Every effective, ongoing needs and its financing of Lebanon in the context of a special program in the context of the Cedar Conference. “
He added: “Our goal is not to move from one program to another, and to continue to come back to you, asking for your support indefinitely. Our goal is to unlock the potential of our people and our economy to build a strong and prosperous Lebanon. For this reason, we seek your support today through foreign direct investment. ” And participate with the relevant authorities and the private sector in the development of joint business projects in Lebanon, and conclude new agreements to ensure appropriate markets for the production of the new Lebanese economy. Our people have the necessary knowledge and we are committed to creating the right environment for business. It is time to build new partnerships in Syria. It’s the recovery program we’ve put together. “
The Finance Minister spoke and said: “A week ago, the government approved the economic recovery plan, the five-year comprehensive financial plan, and this plan is a way out of the existing financial and economic crisis. It is a credible reform plan providing for the first time in the history of Lebanon a clear number of accumulated losses Especially in the financial sector, this plan aims to restore confidence, boost economic growth, promote a healthy financial system and achieve public financial sustainability in Lebanon This plan includes six main pillars.
First: on the subject of public finance reform, its goal is to reduce the public finance deficit from 5.3% of GDP in 2020 to 0.7% of GDP in 2021.
Second: in external support, Lebanon needs between $ 2020 and 2024 around 28 billion dollars, of which between 9 and 10 billion dollars are expected from international financial institutions and another that we will try through the Cedar Conference and other funds.
Third: With regard to the exchange rate policy or the monetary policy or role of the government, the flexible exchange rate policy will be adopted in the next stage.
Fourth: Regarding the restructuring of public debt, the debt in Lebanese pounds and in foreign currency will be parallel, and the objective of the plan is to reduce the debt with local product from 175% to 99%.
Fifth: the restructuring of the financial sector, which includes both the restructuring of the Bank of Lebanon and the restructuring of the banking sector. Its objective is to completely restore the accumulated losses in the financial sector.
Sixth: structural reforms aimed primarily at stimulating economic growth and developing the existing economic system from a rentier system to a productive system. “
He added: “These are the main pillars of the comprehensive financial plan. In conclusion, I can say that President Diab last week requested financial assistance from the Monetary Fund, and I hope that they support the efforts of this government and this plan in international societies.”
For his part, the French ambassador said: “The French authorities have expressed their satisfaction with the economic plan and the official request to the International Monetary Fund, and France has always supported and supported Lebanon. It welcomes the efforts made by the government and He believes the ball is in the court of the Lebanese government today, so that the necessary negotiations can take place. ” With the IMF, especially because it is the right authority for Lebanon to obtain financial loans. “
The European Union ambassador said that “the plan presented by the Lebanese government is a solid and precise plan, and the official request of the IMF is a correct decision, but there are many actions that the government must take at the local level.”
Then the US ambassador spoke up and said, “The United States welcomes the Lebanese government’s request to assist the International Monetary Fund, and regards it as an important gesture on the road to reform, and the fund awaits it in return. of transparency in practice, especially since there are other areas within your economic plan that can be reconsidered. “
The Deputy Prime Minister and the Minister of Defense stressed that “the government is doing everything possible to implement the Sider-related reforms, and submits bills related to reform and the fight against corruption to Parliament in hopes of passing them quickly” .
The British ambassador said: “You have great challenges ahead and establishing the plan is a correct and important step in the right direction, but it requires the internal and social political support of all parties and groups, and the government must make the difficult decisions in a quick period of time at the reform level. “
In turn, the Director General of the Ministry of Finance said: “The idea of the government’s economic plan is to diagnose the Lebanese situation, and this is being done for the first time, and we will trust it to develop a program that can be modified over time, so that it forms a solid base to negotiate with the IMF to allow Lebanon to come out. ” Of their crises. “
Kumar welcomed “all frank discussions about the difficulties Lebanon faces”, noting that “the implementation process will be full of challenges”, saying: “We provide technical assistance through debt management in terms of governance, electrical reforms and the business climate. “
The Italian ambassador considered that “the plan is a step on the right path, and is a comprehensive vision aimed at moving towards a solid economic program.” She said: “We are ready to support any discussion that takes place with the fund, expecting a constructive role for the government, in cooperation with the private sector and civil society.”
The chancellor considered it a “comprehensive economic plan, and the field is open to all to enrich the discussion and investigation,” and said: “Our responsibility is to organize our affairs for the sake of adequate stability.”
The Norwegian ambassador highlighted the “plan”, noting that “it involves difficult options”, expressing “support for Norway, especially the most vulnerable and needy groups”, stressing “the need to support social security in Lebanon”.
Chalhoub emphasized “the importance of reform in the Lebanese banking sector,” hoping that “the discussion will focus on filling these gaps to move on to other reforms.”
“The plan is robust and precise, and takes into account the scale of the challenges,” said Canada’s Ambassador, Emmanuel Lamoru, welcoming “the search for support from the International Monetary Fund and the need to develop reform projects, especially since the implementation process will be difficult. Here, the need for cooperation and communication lies. “
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