BEIRUT: Lebanon’s efforts to secure $3 billion in International Monetary Fund support to help it tackle its financial crisis could be derailed by divisions over how to deal with massive financial sector losses, the economy minister told Reuters on Wednesday.
The Association of the Banks of Lebanon (ABL) said at the weekend that it rejected the latest draft of the government’s recovery plan, which foresees a bail-in of some deposits, haircuts to others, and asks bank shareholders to inject new capital.
“We won’t be able to secure a full IMF deal without the banking restructuring. It’s a major piece of the prior actions” that the IMF wants Lebanon to take before agreeing to a full support deal, said economy minister Amin Salam.
“You need the government, the central bank and the banking sector to be on the same page. You can’t do it if they’re not all on one page,” added Salam, who is also a member of Lebanon’s negotiating team with the IMF.
The ABL called the plan “disastrous,” however, and said it would leave banks and depositors shouldering the “major portion” of what the government says is $72 billion in losses.
The ABL’s approval is not required for the government to begin implementing a plan — but experts say support from the banking sector could contribute to finding a way out of the crisis.
Banks have said that the state should foot the bill for the losses, including by privatising public assets.
Lebanon reached a preliminary agreement with the IMF earlier this month that listed a number of so-called prior actions that the fund said must be implemented before it could reach a full deal with the country.
These include approval of a reformed banking secrecy law and the “initiation of an externally assisted bank-by-bank evaluation for the 14 largest banks.”
Lebanon’s banks have been major lenders to the government for decades, helping to finance a wasteful and corrupt state that tipped into financial meltdown in 2019.
The collapse has resulted in depositors being shut out of their savings as the local currency lost more than 90 percent of its value.
Standoff with Lebanon banks could derail IMF deal, minister says
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Standoff with Lebanon banks could derail IMF deal, minister says
- The Association of the Banks of Lebanon (ABL) said at the weekend that it rejected the latest draft of the government's recovery plan
- "We won't be able to secure a full IMF deal without the banking restructuring,” said economy minister Amin Salam
QatarEnergy secures offshore exploration license in Libya
RIYADH: QatarEnergy has secured a marine exploration license in Libya following the conclusion of the “Libya Bid Round,” marking its entry into the country’s energy sector.
In a statement, QatarEnergy said Libya’s National Oil Corp. announced the results of the competitive bidding process, the first licensing round held in the country since 2007.
Exploration and production rights for Block O1 were awarded to a consortium comprising QatarEnergy, which holds a 40 percent participating interest, and Italy’s Eni, the operator, with a 60 percent stake.
Commenting on the development, Qatar’s Minister of State for Energy Affairs and President and CEO of QatarEnergy, Saad Sherida Al-Kaabi, said: “We are pleased to have been awarded exploration rights in this area and are encouraged by the potential of Libya’s offshore sector and the opportunities to expand our footprint in North Africa.”
He added: “I would like to thank and congratulate the Libyan authorities on the success of this licensing round. We look forward to working closely with the Libyan authorities and Eni to ensure the successful execution of the exploration program.”
Block O1 is located in the offshore Sirte Basin and spans approximately 29,000 sq. km, with water depths reaching up to 2,000 meters.
Beyond Libya, QatarEnergy continues to expand its global presence, particularly in Asia. The company recently signed a 20-year sales and purchase agreement with Malaysia’s Petronas to supply 2 million tonnes per annum of liquefied natural gas starting in 2028.
The agreement, signed during the LNG2026 conference in Doha, represents the first long-term LNG deal between the two state-owned energy companies. QatarEnergy said the partnership reflects “continued confidence and trust between the two organizations” and underscores their shared vision for a sustainable energy future.
Al-Kaabi noted that the agreement “highlights our continued commitment to supporting Malaysia’s growing energy needs, as well as those of our customers worldwide.”
On the sidelines of the same conference, QatarEnergy also signed a memorandum of understanding with Japan’s Ministry of Economy, Trade and Industry and JERA to supply additional LNG volumes during emergencies, such as natural disasters.
