Lebanese Finance Minister Yassine Jaber and Economy and Trade Minister Amer Al-Bsat held talks on Friday with Stefano Sannino, the European Union’s Regional Director for the Middle East, to discuss ways to strengthen cooperation as Lebanon navigates its ongoing financial crisis and seeks to implement its new recovery and reform plan.

During the meeting at the Ministry of Finance, the EU delegation underscored the importance of Lebanon securing a new agreement with the International Monetary Fund (IMF), calling it a crucial step in fostering a stable economic environment. The delegation stressed that such an agreement would not only unlock international aid but also help attract much-needed foreign investment. They highlighted several key measures necessary for economic recovery, including infrastructure development, institutional reforms, and restructuring the banking sector. Discussions also touched on possible avenues of cooperation with the European Investment Bank and the European Bank for Reconstruction and Development.

As part of Lebanon’s broader efforts to increase State revenues and modernize its financial infrastructure, the Ministry of Finance held a virtual working meeting on Thursday. The meeting, chaired by Finance Minister Jaber, included key ministry officials and advisory experts, as well as representatives from the IMF in Washington and a team from the Middle East Regional Technical Assistance Center (METAC) in Lebanon.

The discussions focused on two main areas: enhancing tax and customs revenue collection and upgrading IT systems to support these efforts. Participants examined ways to strengthen tax enforcement, including the automatic exchange of financial information between tax and customs authorities.

Minister Jaber emphasized the urgent need to reform Lebanon’s public financial management, modernize tax policies, and increase transparency. He pointed to existing challenges within the ministry’s outdated IT systems, including obsolete infrastructure and licensing shortages, calling for immediate action to improve the state’s financial performance.

“The financial performance of the State must be improved, and all necessary legal measures must be taken to enhance revenue efficiency. This is a top priority in Lebanon’s recovery and reform agenda,” Jaber stated.

Discussions also addressed structural challenges within Lebanon’s customs administration. Participants agreed on the need for a review of customs regulations and an acceleration of reforms to improve efficiency and oversight.

At the conclusion of the meeting, officials outlined several key steps moving forward, including:

• Dispatching a specialized mission to develop a roadmap for modernizing Lebanon’s tax and customs systems.

• Reviewing customs legislation to ensure alignment with proposed reforms.

• Organizing a workshop in Beirut to strengthen cooperation between tax and customs authorities at both local and international levels.

France to Provide Financial, Technical Support

In a separate meeting, Finance Minister Jaber met with François Sporrer, Head of the Economic Department at the French Embassy in Beirut, to discuss ongoing financial cooperation between Lebanon and France.

Sporrer informed Jaber that France would provide financial assistance to support Lebanon’s efforts to modernize its financial technology systems. He also announced that a French financial expert would be sent to Beirut to assist the ministry’s team in drafting the 2024 state budget.

Moreover, Sporrer revealed that Jacques de Lajugie, a senior French envoy, is set to visit Lebanon next week to meet with government officials. The visit comes as part of preparations for an upcoming international conference in Paris aimed at mobilizing support for Lebanon’s economic recovery.