The Lebanese government has said it will receive $ 1.135 billion in special drawing rights from the International Monetary Fund (IMF) as the newly formed government tries to tackle the worst economic collapse in decades.
On Monday, the Lebanese finance ministry said in a statement that the central bank would receive $ 1.135 billion in special drawing rights (SDRs) from the International Monetary Fund (IMF) on September 16.
The SDR is an international fund created to supplement the official reserves of IMF member countries. The allocation will include $ 860 million from 2021 and $ 275 million from 2009. The IMF announced in August that Lebanon would receive $ 607.2 million in SDRs although an agreement with Qatar saw the figure turned into $ 860 million, with the funds entering the Lebanese central bank in mid-September.
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Lebanon announces new government, ending 13-month political deadlock
On Friday, after 13 months of political stalemate, Prime Minister Najib Mikati formed a new cabinet and signed it by decree alongside President Michel Aoun. The formation of the government also paves the way for further discussions with the IMF.
The deal gives hope that the once prosperous country will be able to overcome serious financial problems that have seen three quarters of its population fall into poverty.
Foreign currency depletion has also played its part, leading to shortages of basic commodities such as fuel and medicine in recent months. In July, two major power plants, supplying around 40% of the country’s electricity, closed as foreign banks refrain from signing deals that would allow Electricité Du Liban to unload two cargoes of fuel waiting at the port. .
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