Lebanon Negotiates Banking Restructuring Strategy With IMF
Lebanon is negotiating a bailout with the International Monetary Fund to resolve a banking crisis and restore financial stability following its 2019 economic collapse.
The International Monetary Fund conducted a series of negotiations with Lebanese authorities between November 10 and November 12, 2026, to establish a banking sector restructuring strategy. The talks aim to secure a comprehensive reform program to restore financial stability following Lebanon's 2019 economic collapse and 2020 debt default.
Finance Minister Yassine Jaber led the Lebanese delegation, stating the government's goal was to reach a preliminary agreement by November 13. However, a primary point of contention remains the distribution of losses between the state, the central bank, commercial banks, and depositors. While the government proposes that the state and central bank shoulder losses first, the banking sector and various political parties continue to contest the draft. The IMF has conditioned financial assistance on the adoption of a financial gap law, the implementation of banking restructuring, and the approval of a 2027 budget.
Further complications include a legal challenge by President Joseph Aoun, who appealed to the Constitutional Council regarding amendments to the central bank's independence and restructuring legislation. Additionally, the World Bank Group estimated that Lebanon's economy would contract by 6.4 percent this year, exacerbated by ongoing conflicts between Israel and Hezbollah.
