Lebanon to sign contract for central bank audit in days

  • 9/14/2021
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BEIRUT (Reuters) -Lebanon will sign a new contract for a forensic audit of the central bank with Alvarez & Marsal (A&M) within days, the outgoing finance minister Ghazi Wazni said on Tuesday, signalling a renewed push to deliver on a key donor demand.Since then, Lebanon’s financial collapse has deepened: more than three quarters of the population are now in poverty, the currency has lost 90% of its value, and the country is paralysed by fuel shortages. Wazni said an IMF programme was the only way out of the crisis. “When we started negotiating with the Fund in March 2020, the majority were against this, and today everyone views negotiations with it as inevitable,” Wazni said. The new government led by Prime Minister Najib Mikati was agreed on Friday after a year of political fighting over cabinet seats. Mikati has said he will seek talks with the IMF. Khalil, the new finance minister, served as a senior central bank official and is close to its veteran governor Riad Salameh. He also took part in Lebanon’s meetings with the IMF last year. Like Wazni, he was approved by Shi’ite Muslim parliament Speaker Nabih Berri, one of Lebanon’s most powerful politicians. The plan for an audit, a key requirement for Lebanon to secure vital foreign aid, hit a roadblock in November when restructuring consultancy A&M withdrew, saying it had not received information it needed from the central bank. The finance ministry said in April the central bank had agreed to hand over documents required by A&M. Khalil, speaking alongside Wazni, said failure in his new role was not an option, saying it would only exacerbate Lebanon’s problems.

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