The International Monetary Fund said Thursday that crisis-hit Lebanon is "at a dangerous crossroads" and criticized the slow implementation of badly-needed reforms to alleviate an ailing economy wracked by a collapsing currency and triple-digit inflation.
"Lebanon is at a dangerous crossroads, and without rapid reforms will be mired in a never-ending crisis. Poverty and unemployment will remain high, and economic potential will continue to decline," an IMF statement said after a delegation led by Ernesto Ramirez Rigo wrapped up their visit to Beirut.
Since 2019, the Lebanese pound has lost since then more than 95% of its value.
The pound stands on the parallel market at more than 100,000 for each US dollar, a steep plunge from 1,507 before the crisis started.
"A continuation of the status quo would further undermine trust in the country's institutions and additional delays in implementing reforms will keep the economy depressed," the IMF statement said.
The World Bank has described the economic crisis in Lebanon as among the most severe in the world since the mid-1800s.
In April 2022, Lebanon and the IMF reached a conditional agreement on a $3 billion loan needed to save the economy.
The statement stressed that the limited progress in implementing a comprehensive package of economic reforms, set out in an agreement with the IMF, would further undermines Lebanon's long-term economic potential.
