The International Support Group for Lebanon said that the country faces anarchic dissolution of its economy and increased instability unless it implements urgent reforms that give international financial institutions confidence to provide support.
"In order to stop the severe deterioration in the economy, there is an urgent need to adopt a package of sustainable, reliable and comprehensive economic reform policies to restore balance and financial stability," the support group said in a closing statement after a meeting in Paris yesterday.
The group urged the Lebanese authorities to adopt a "credible budget for 2020" within weeks of forming a new government and cracking down on corruption more severely.
Lebanon won pledges of more than $ 11 billion during a conference held last year, provided that reforms are implemented that it has not implemented yet. The roots of the economic crisis go back to years of corruption and waste that created one of the heaviest burdens of public debt in the world.
French Foreign Minister Jean-Yves Le Drian said it was necessary to form a credible government to press ahead with the reforms needed to open the door to international financial support.
"The members of the group believe that obtaining the support of the international financial institutions is pivotal in order to help the authorities continue their efforts to gradually implement the necessary economic reforms," the statement added.
Lebanon, which has suffered its worst economic crises since the 1975-90 civil war, has been in political paralysis since Saad Hariri's resignation as prime minister following massive protests against the ruling elite. Its lira currency plunged into the parallel market and banks were forced to impose restrictions on capital movement.