New SDR reserves won't fix Lebanon's structural problems -IMF's Georgieva

Government empowered needed to pursue economic reforms

  
IMF Managing Director Kristalina Georgieva speaks during a conference hosted by the Vatican on economic solidarity, at the Vatican, February 5, 2020.

IMF Managing Director Kristalina Georgieva speaks during a conference hosted by the Vatican on economic solidarity, at the Vatican, February 5, 2020.

REUTERS/Remo Casilli

WASHINGTON- Lebanon will receive about $860 million worth of new International Monetary Fund reserves, but this will not fix the country's chronic problems without a government empowered to pursue economic reforms, IMF Managing Director Kristalina Georgieva said on Wednesday.

At a donor conference on the anniversary of a massive port explosion that further crippled Lebanon's economy, Georgieva said Lebanon's new SDRs, expected to be distributed on Aug. 23, "must be deployed for the maximum benefit of the country and its people."

"But the SDRs are not going to fix Lebanon's longer-term structural, systemic problems," Georgieva said. "What do we need for that We need a government that is empowered to reform and revitalize Lebanon's crippled economy."

(Reporting by David Lawder; Editing by Anil D'Silva) ((David.Lawder@tr.com; +1 202 354 5854; Reuters Messaging: david.lawder.thomsonreuters.com@reuters.net))


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