Lebanon’s New Government Wins Confidence Vote, IMF Talks

Lebanon’s newly formed government, led by Prime Minister Nawaf Salam, secured a crucial vote of confidence in parliament on Wednesday, paving the way for promised economic reforms and negotiations with the International Monetary Fund (IMF), Al Jazeera reports.

The government garnered the support of 95 lawmakers in the 128-seat parliament.

Prime Minister Salam addressed the chamber before the vote, outlining his administration’s commitment to addressing Lebanon’s crippling economic crisis. He vowed to prioritize depositors who have been locked out of their savings since the nation’s financial system imploded in 2019.

“We will work on removing Lebanon from the grey list and start negotiations with the International Monetary Fund,” Salam stated. “We will put depositors at the top of our priorities.”

The vote marks a significant moment for Lebanon, which has been grappling with severe economic hardship since the collapse of its financial system. The crisis, triggered by massive state debts, led to a sovereign default in 2020.

This new government emerged after an unusually direct intervention from the United States, with the intention of facilitating access to vital reconstruction funds following the war between Israel and Hezbollah last year. The political landscape in Lebanon has shifted considerably since the conflict, with Hezbollah, traditionally a dominant force in Lebanese politics, experiencing significant setbacks.

In a notable departure from previous administrations, the new government’s policy statement omits language previously used to legitimize Hezbollah’s role in defending Lebanon.

“We want a state that holds the exclusive authority over decisions on war and peace, a state loyal to the constitution and national accord ensuring the implementation of unfulfilled provisions,” Salam declared.

Despite this shift, Hezbollah offered its support for the government, with senior lawmaker Mohammed Raad delivering a speech on Tuesday backing the new administration.

Beyond the immediate economic challenges, the government faces a daunting task of rebuilding the country’s infrastructure and addressing the deep-seated financial sector woes.

Lebanon had previously reached a draft funding agreement with the IMF in 2022, but the deal remains contingent on the implementation of critical reforms that previous authorities failed to deliver.