The IMF welcomed Lebanon’s parliament passing amendments to a bank resolution law, calling the measure critical for restructuring or liquidating failing banks and gradually restoring frozen deposits. The reforms are among the conditions for potential IMF funding to help bring government debt out of default, but presidential approval and possible Constitutional Council challenges could delay implementation. The World Bank projects Lebanon’s economy will contract 6.4% in 2026 after real GDP grew 4.2% in 2025, with inflation expected to reach 17.5% following renewed conflict, supply disruptions, higher shipping costs and volatile fuel prices. Banking-sector restructuring and fiscal management remain central to restoring confidence and financing reconstruction.