Hezbollah says it won’t oppose IMF aid
>>BEIRUT: Lebanon’s powerful Hezbollah movement, which has strongly opposed foreign interference in the country’s crisis-hit economy, said on Friday it could accept Beirut receiving an International Monetary Fund financial rescue package under “reasonable conditions”.
“Any help within reasonable conditions, there’s no problem with it in principle,” the Shia movement’s chief Hassan Nasrallah said in a televised address. But he warned that “Lebanon must not fall under anybody’s trusteeship or hand over its financial and economic administration” to outsiders.
One of the most indebted countries in the world, Lebanon has been rocked by a months-long political and financial crisis. The country’s pound has tumbled in value and banks have imposed strict limits on dollar withdrawals amid a strangulating liquidity crunch and mass protests against the political class.
Lebanon said last week it would default on its Eurobond debt for the first time, saying that was the only way to shore up its foreign currency reserves. Banking experts have called for an IMF rescue package, saying it would secure desperately-needed international assistance and reassure creditors. But Hezbollah, which along with its allies holds a majority in parliament, has opposed such moves. It has rejected conditions and “ready-made recipes” which global bodies could impose, warning against what it called “foreign guardianship” over the economy.
Hezbollah is backed by Iran, whose arch foe the US has a virtual veto on IMF decisions. The IMF on Thursday urged Lebanon to quickly implement reforms to stabilise the economy. While the country has not requested aid from the US-based lender, “We stand ready to assist the authorities in those efforts,” IMF spokesman Gerry Rice said.
Lebanon’s debt burden is now equivalent to nearly 170% of its gross domestic product. Despite a series of crises, the country had never before defaulted, but in recent months it has grappled with its worst economic turmoil since the 1975-1990 civil war.