Economics

IMF Deal Breakthrough Is Within Reach for Crisis-Hit Lebanon

  • Fund’s delegation is in Beirut this week to continue aid talks
  • Lebanon defaulted on over $30 billion of foreign debt in 2020
Protesters during a demonstration outside the headquarters of Lebanon’s central bank, in Beirut, Lebanon, on Jan. 23.Photographer: Hasan Shaaban/Bloomberg
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Lebanon may be closer than ever to breaking a two-year deadlock in talks with the International Monetary Fund, a senior official said, a step that could help draw a line under one of the world’s worst financial crises in over a century.

The economy is in the grip of hyperinflation with the currency in freefall after the government defaulted on over $30 billion in international debt. But as key legislation makes its way through parliament, Lebanese authorities are turning more optimistic they can reach a staff-level agreement with the Washington-based lender before elections in May, Deputy Prime Minister Saade Chami said in an interview.