To ask the Chancellor of the Exchequer, pursuant to the Answer of 7 July 2020 to Question 68305 on Loans: Lebanon, what risks of misuse the International Monetary Fund has identified for loan packages to Lebanon; and what plans he has for conditions on lending relating to Hezbollah in Lebanon.
13 July 2020
The IMF must establish adequate safeguards for use of its resources, consulting and updating the Board of Directors, as its policy develops. Safeguards can include for example: strengthening auditing or procurement rules, and wider Central Bank reform. The UK uses its seat on the IMF Board, in conjunction with other board members, to help ensure that programme conditions are consistent with the IMF’s mandate.
There have not been formal discussions at the IMF board on Lebanon, though the IMF’s spokesman has said recently that “there is significant scope to strengthen the transparency and accountability of economic policies, and public sector entities.”