BEIRUT: A unified financial reform plan will allow Lebanon to overcome its economic issues and unlock foreign funding, the head of the IMF’s mission to the country said on Wednesday.

Ernesto Ramirez Rigo was speaking in a meeting with President Joseph Aoun, who said that Lebanon was “committed to moving forward with implementing reforms.”

Negotiations between Lebanon and the IMF aim to pave the way for essential reforms to put the country on the path to financial recovery.

It follows worsening financial and economic crises that Lebanon has been grappling with since 2019 due to economic mismanagement, rampant corruption and accumulated debt.

Presidential media adviser Najat Charafeddine told Arab News: “The IMF delegation emphasized that Lebanon’s proposed plan must be approved by all relevant parties in order to pass in parliament.

Implementing reforms will enable Lebanon to receive aid, including grants, particularly from countries with close ties, the delegation said.

“Achieving the plan will serve as an IMF seal of approval that will unlock assistance,” Lebanese officials were told.

The delegation also highlighted “the necessity of Lebanon returning to the fundamentals, particularly in restructuring banks and revisiting banking secrecy laws, which have yet to see the light of day due to disagreements.”

Over the past two days, specialized technical meetings have continued between experts from the IMF and a World Bank delegation, along with directors of departments and specialized experts at the Lebanese Ministry of Finance.

The talks aimed “to reach conclusions on proposed issues to promote transparency in public finances and more comprehensive reforms,” a Ministry of Finance statement said.

The IMF delegation met Prime Minister Nawaf Salam, Parliament Speaker Nabih Berri and Finance Minister Yassine Jaber to discuss the details of the economic plan and required reforms.

Jaber said he discussed “the priorities, namely the appointment of the governor of Banque du Liban, who will play a crucial role in working with the IMF.

“Preparations for reforms are ongoing to enable Lebanon to implement its financial plan,” he added, highlighting support for amending Lebanon’s Monetary and Credit Law.

Jaber said: “The issue of frozen deposits in banks will be addressed in stages, and as minister of finance, I have no authority over the banking sector.”

Ousmane Dione, World Bank VP for the Middle East and North Africa, who met Jaber in Beirut in late February, had previously called on the Lebanese government to implement reforms.

This would “ensure credibility and transparency, reassure investors and improve the business environment,” he said.

The IMF delegation will meet a technical committee at the Association of Banks on Thursday.

According to media reports, the meeting will focus on “the performance of the exchange market and the Banque du Liban’s interventions, the banking restrictions on transfers and the authorization of certain outgoing transfers.

“This is seen as an attempt to monitor Lebanon’s cash economy, which has flourished since the country’s financial collapse.”

Meanwhile, diplomatic pressure exerted by Lebanon on the five-member committee overseeing the implementation of the ceasefire agreement between Hezbollah and Israel led to the release of four captives held by the latter on Tuesday evening.

The development was welcomed by Hezbollah supporters.

Israel is set to release a fifth person, a Lebanese soldier, on Wednesday evening, after he underwent surgery in an Israeli hospital.

It follows the release of four Lebanese captives a day earlier.

On social media, activists supporting Hezbollah celebrated the release of prisoners held by Israel for three months as a result of “diplomatic, not military, efforts.”

One activist claimed that President Joseph Aoun “had achieved what 100,000 rockets failed to accomplish,” while another said: “Diplomacy succeeded in releasing five prisoners, and tomorrow it could resolve the issues surrounding the disputed border points.”

Axios quoted a US official on Tuesday: “The Trump administration had been mediating between Israel and Lebanon for several weeks with the aim of strengthening the ceasefire and reaching a broader agreement.

“All parties are committed to upholding the ceasefire agreement in Lebanon and fulfilling all its conditions. We look forward to convening swift meetings of the working groups regarding Lebanon to address the outstanding issues. Israel and Lebanon have agreed to initiate negotiations to resolve disputes concerning their land borders.”

Six of 13 points remain unresolved since the establishment of the Blue Line following Israel’s withdrawal from Lebanon in 2000.

Additionally, Israel has yet to withdraw from five Lebanese hills it occupies in the border area following the recent conflict.

Reporters in the south have said that the Israeli army has expanded its presence around the hills, where it has established military facilities.

A joint statement issued by the US and French embassies in Lebanon and UNIFIL on Tuesday said: “The ceasefire implementation mechanism committee will continue to hold regular meetings to ensure full implementation of the cessation of hostilities.”

Israeli Channel 12 quoted an Israeli politician as saying: “Discussions with Lebanon are part of a broader and comprehensive plan. Israel aims to achieve normalization with Lebanon.

“The prime minister’s policy has already transformed the Middle East, and we wish to maintain this momentum and reach normalization with Lebanon.

“Just as Lebanon has claims regarding the borders, we also have our own border claims ... we will address these matters.”