Lebanon may secure a staff-level agreement with the International Monetary Fund (IMF) within months, according to Economy Minister Amer Bisat, Bloomberg reported on Monday. The report detailed that the agreement would mark a significant step toward securing financial assistance for the country, which has been grappling with a prolonged economic crisis.

Bisat, formerly an emerging markets manager at BlackRock Inc., stated that Lebanon is set to hold an introductory meeting with holders of the country's defaulted bonds on April 25 in Washington. He stressed that discussions with the IMF have been "very detailed and very fruitful," suggesting that late summer would be a "reasonable target" for finalizing a staff-level agreement.

Lebanon defaulted on about $30 billion of international bonds in 2020, and its economy deteriorated.

The Israeli war on Lebanon further devastated the nation, particularly the South, resulting in an estimated $14 billion in losses and damage, according to the World Bank.

While it is still too early to determine the size or timeline of a potential IMF loan, according to Bloomberg, the staff-level agreement would initiate formal negotiations over a funding package aimed at stabilizing Lebanon’s economy.

Banking secrecy law lifted to facilitate financial reform

The report explained that as part of its reform efforts, Lebanon lifted long-standing banking secrecy laws, allowing authorities broader access to financial records. This move is considered critical for restructuring the financial sector and rebuilding confidence in the banking system.

The Lebanese cabinet has drafted a new banking law to support restructuring, awaiting parliamentary approval. That said, implementing resolution measures will be complex, balancing sector stability with returning deposits to citizens.

“It’s going to take a while,” Bisat said. “We need to be sober, we need to be deliberate, we need to be scientific.”

The IMF and other international bodies have long insisted on structural reforms. These reforms are crucial as Lebanese officials, including Finance Minister Yassine Jaber and Central Bank Governor Karim Souaid, meet with IMF representatives in Washington.

Legal Agenda, a Lebanese non-governmental organization, explained that the amendments now allow regulatory bodies to access customer names and deposit details and investigate suspicious transactions without a specific legal mandate.

The law applies retroactively for 10 years, covering the period from the start of Lebanon’s financial collapse.

It is worth adding that on Thursday, the World Bank has granted Lebanon a $250 million loan to help address chronic power outages exacerbated by "Israel's" war on Lebanon last year, the country’s Finance Ministry announced.

The funding aims to support urgent reforms in Lebanon’s electricity sector, which has long suffered from fuel shortages and poor infrastructure.