IMF and World Bank Condition Aid to Lebanon on Israel Normalization and Hezbollah Disarmament

The IMF and World Bank are considering linking reconstruction funding for Lebanon to the normalization of relations with Israel and Hezbollah’s disarmament. Recent discussions have indicated specific requirements for access to international aid, coinciding with US political pressures. The World Bank plans to approve funds contingent upon Lebanon implementing necessary reforms amidst an estimated need of $6-$7 billion for rebuilding post-conflict infrastructure.

The International Monetary Fund (IMF) and the World Bank are reportedly considering linking reconstruction funds for Lebanon to two key requirements: the normalization of Lebanon’s relations with Israel and the disarmament of the Hezbollah group. According to a report by the Beirut-based newspaper Al Akhbar, IMF chief Kristalina Georgieva communicated to Lebanon’s acting central bank governor, Wassim Mansouri, that access to international funding would depend on specific steps undertaken within a designated timeline.

The newspaper revealed that these conditions align with expected political pressures framed around normalization and disarmament, which echoes sentiments from US Special Envoy to the Middle East Steve Witkoff regarding the possibility of Lebanon and Syria joining the normalization agreements initiated during President Donald Trump’s administration. The World Bank recently indicated that it had developed a preliminary plan for a $1 billion reconstruction project in Lebanon following devastating Israeli military actions.

The Al Akhbar report indicates that the World Bank plans to approve these funds during its upcoming Executive Board meeting on March 25, contingent upon Lebanon’s implementation of financial and political reforms demanded by Western nations. Additionally, the European Union has stipulated that its funding for Lebanon is dependent on the restructuring of its banking system, which has delayed the allocation of €500 million aimed at addressing refugee flows from Lebanon to Europe.

Recent assessments suggest that Lebanon requires between $6 to $7 billion to restore its infrastructure and remove debris caused by Israeli attacks. So far, Hezbollah has primarily funded these efforts, allocating approximately $650 million for housing and restoration in southern Beirut and adjacent areas. Notwithstanding continual ceasefire violations and intimidation from Israel, residents in certain southern Lebanese villages have begun returning to their damaged homes.

Hezbollah has also engaged in supporting Palestinians in Gaza following Israel’s intense military operations that began on October 7, 2023, resulting in various retaliatory attacks against Israeli targets. Following substantial military setbacks, Israel consented to a ceasefire with Hezbollah on November 27, 2024, after suffering considerable losses despite extensive offensives that resulted in significant civilian casualties in Lebanon.

In summary, the IMF and World Bank’s proposal to condition reconstruction funding for Lebanon on political reforms, normalization with Israel, and the disarmament of Hezbollah illustrates the intricate relationship between international financial aid and regional geopolitics. With Lebanon’s dire need for rebuilding after conflict and the complexities of its political environment, the situation remains critical. Hezbollah’s significant role in funding reconstruction amid these conditions exemplifies the ongoing challenges Lebanon faces in achieving stability. Moreover, continued international pressure on Lebanon reinforces the fragility of its political dynamics, particularly in light of external influences that shape its governance and security measures.

Original Source: www.presstv.ir