Lebanon on Wednesday entered talks with the International Monetary Fund aimed at securing aid to rescue a crumbling economy, the finance ministry said.
Lebanon is battling its worst economic crisis since the 1975-1990 civil war. The sutuation has worsened with a coronavirus lockdown.
The country, which last autumn was hit by protests, asked the IMF for financial assistance on May 1 after producing a much-awaited financial rescue plan.
"The Lebanese government and the IMF wrapped up their first stage of discussions towards trying to reach a deal to set the Lebanese economy back on the right path," Finance Minister Ghazi Wazni said.
"We are satisfied with the atmosphere of these initial talks and hope the next ones will be just as constructive."
Under the rescue plan, the government will seek more than $10 billion (Dh36.7bn) from the IMF, on top of $11bn in grants and loans pledged by international donors in 2018.
President Michel Aoun said financial aid from the IMF was "mandatory" for an economic recovery.
The country's currency has plummeted in value on the grey market in recent weeks, and some 45 per cent of the population now live in poverty.
The rescue plan aims to reduce the deficit, restructure a colossal debt and reorganise an oversized banking sector.
Lebanon is one of the most indebted countries worldwide with a debt equal to 170 per cent of its gross domestic product. It defaulted on a repayment for the first time in March.
The country is also in the grip of a severe liquidity crunch, with depositors unable to make transfers abroad or withdraw US dollars, which are used alongside the pound.
Coronavirus in Lebanon
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Health Ministry staff conduct random tests for the Covid-19 disease at Imam Al-Hadi Zentrum in the Ouzai area south of Beirut. EPA -
A Lebanese protester, wearing a protective mask bearing a fist, is pictured during a demonstration in the capital Beirut on April 28, 2020. AFP -
A member of the Lebanese Internal Security Forces distributes protective face masks in Hamra street. EPA -
Neighbours listen to music and watch laser projections from their balconies as members of the Lebanese collective "Nuage" perform from the roof of a building to entertain confined residents in their neighbourhood of Dekwaneh. AFP -
Neighbours listen to music and watch laser projections from their balconies as members of the Lebanese collective "Nuage" perform from the roof of a building to entertain confined residents in their neighbourhood of Dekwaneh. AFP -
Runners smile and react to having their picture taken as they run on Beirut's corniche, along the Mediterranean Sea. AP -
Health Ministry staff wear protective face masks and protective suits as they wait to conduct a random tests for the Covid-19. EPA -
Health Ministry staff conduct random tests for the Covid-19 disease at Imam Al-Hadi Zentrum in the Ouzai area south of Beirut. EPA -
A Lebanese drummer wears a protective mask and carries a small drum as he makes his rounds waking Muslims for Suhor, the meal taken during Ramadan before sunrise prayers, amid a lockdown due to the ongoing coronavirus Covid-19 pandemic in Beirut. EPA -
Medical staff at the Saint George Hospital University Medical Centre in charge of Covid-19 coronavirus patients reflections off a window as they listen to music played by a band thanking them for their efforts during the novel coronavirus pandemic. AFP -
A nurse at the Lebanese hospital Notre Dame des Secours shows a heart gesture with her hands as others dance to music played by a band thanking them for their efforts. AFP -
Staff of a Lebanese government hospital dance to music played by a band thanking them for their efforts. AFP -
Staff members of the Lebanese American University Medical Centre-Rizk Hospital, currently dealing with COVID-19 coronavirus patients, look out from windows as they listen to music. AFP -
Palestinian fighters from the Fatah movement, left, wearing masks to help curb the spread of the coronavirus, stand guard next to a Palestinian worker from UNRWA who is waiting to spray disinfectant AP -
A Palestinian nurse wears protective equipment to help curb the spread of the coronavirus inside a clinic at Jalil, or Galilee Palestinian refugee camp, in Baalbek. AP -
A Palestinian fighter from the Fatah movement distributes masks for people to help curb the spread of the coronavirus. AP -
Palestinians wearing masks to help curb the spread of the coronavirus stand on their balcony watching the arrival of the Lebanese health minister at Jalil, or Galilee Palestinian refugee camp, in Baalbek. AP -
A health worker dressed in a protective outfit walks in an alley at the Wavel Palestinian refugee camp in Lebanon's eastern Bekaa Valley. AFP
