BEIRUT, Oct 4 Reuters - Lebanon has resumed interactions with the International Monetary Fund with a view to agreeing an appropriate recovery program the finance ministry said on Monday, as Prime Minister Najib Mikati's new government seeks to address the country’s devastating economic meltdown.
In a statement, the ministry also said that the government remains fully committed to engage in a constructive, equitable and transparent debt restructuring process with all other stakeholders accepting the interest of bondholders to participate in the process.
The government reiterates its commitment to a fair and comprehensive solution for all creditors and will engage with all its creditors as soon as practicable in good faith discussions, said it.
Since late 2019, Lebanon has been in deep financial crisis, since when the currency lost some 90% of its value, poverty has soared and the banking system has been paralysed.
In March 2020, the country defaulted on its sovereign debt, saying it needed foreign currency reserves to meet basic needs.
Talks between the Lebanese government and IMF broke down last summer, in large part due to a disagreement between the Lebanese government on the one hand and banks, the central bank and ruling political parties on the other, over the scale of losses in the financial system.