World Bank urges Lebanon to apply reforms to avoid further collapse

BEIRUT, Lebanon

The World Bank on Wednesday called on Lebanon to accelerate implementing a comprehensive recovery plan to exit its currently deep economic and financial crisis.

"Despite early warnings, Lebanon has lost precious time and numerous opportunities to adopt a path to reform its economic and financial system," Saroj Kumar Jha, the World Bank's Middle East Regional Director, said in a statement.

“The cost of inaction is colossal, not only on the daily lives of citizens but also on the future of the Lebanese people," he added.

Kumar Jha warned that if no reforms are applied, "real GDP [in Lebanon] is projected to contract by 6.5 percent in 2022," and will put Lebanon at "a risk of a systematic failing of state institutions and pressure on an already fragile social peace."

According to the statement, the World Bank extended the implementation of the Lebanon Country Partnership Framework for another year to enhance the socioeconomic recovery programs.

Since late 2019, Lebanon has been grappling with a severe economic crisis, including a massive currency depreciation as well as fuel and medical shortages.

*Writing by Ahmed Asmar

BEIRUT, Lebanon

The World Bank on Wednesday called on Lebanon to accelerate implementing a comprehensive recovery plan to exit its currently deep economic and financial crisis.

“The cost of inaction is colossal, not only on the daily lives of citizens but also on the future of the Lebanese people," he added.

According to the statement, the World Bank extended the implementation of the Lebanon Country Partnership Framework for another year to enhance the socioeconomic recovery programs.

Since late 2019, Lebanon has been grappling with a severe economic crisis, including a massive currency depreciation as well as fuel and medical shortages.

*Writing by Ahmed Asmar