French Envoy Criticizes Lebanon over 'Slow' Reforms Needed for IMF Loan

A handout picture provided by the Lebanese photo agency Dalati and Nohra shows Lebanon's caretaker Energy Minister Walid Fayad (right) meeting with French Envoy in charge of coordinating the international aid to Lebanon Pierre Duquesne in the capital Beirut on February 3, 2023. (Photo by DALATI AND NOHRA / AFP)
A handout picture provided by the Lebanese photo agency Dalati and Nohra shows Lebanon's caretaker Energy Minister Walid Fayad (right) meeting with French Envoy in charge of coordinating the international aid to Lebanon Pierre Duquesne in the capital Beirut on February 3, 2023. (Photo by DALATI AND NOHRA / AFP)
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French Envoy Criticizes Lebanon over 'Slow' Reforms Needed for IMF Loan

A handout picture provided by the Lebanese photo agency Dalati and Nohra shows Lebanon's caretaker Energy Minister Walid Fayad (right) meeting with French Envoy in charge of coordinating the international aid to Lebanon Pierre Duquesne in the capital Beirut on February 3, 2023. (Photo by DALATI AND NOHRA / AFP)
A handout picture provided by the Lebanese photo agency Dalati and Nohra shows Lebanon's caretaker Energy Minister Walid Fayad (right) meeting with French Envoy in charge of coordinating the international aid to Lebanon Pierre Duquesne in the capital Beirut on February 3, 2023. (Photo by DALATI AND NOHRA / AFP)

The French diplomat charged with coordinating international support for Lebanon, so it can receive International Monetary Fund aid, on Friday criticized the slow pace of reforms in the crisis-hit country.

The IMF last April announced an agreement in principle with Beirut for $3 billion in aid spread over four years, but conditional on implementing crucial reforms, reported AFP.

"It's really slow," Pierre Duquesne told journalists in the Lebanese capital, at the same time highlighting "a few minor adjustments that go in the right direction".

Among the reforms demanded by the IMF is parliament's approval of the 2022 budget, which Duquesne said came "late".

Lebanon has been effectively leaderless for months, without a president and ruled by a caretaker cabinet.

The IMF is also demanding reform of banking secrecy laws and a restructuring of the banking sector as a whole, as well as a law on capital controls.

"There is no other solution than the IMF to provide capital, credibility and confidence... and to reduce inequality," Duquesne said.

Paris will host an international meeting on Monday on how to end months of political deadlock in Lebanon, with representatives from France, the United States, Saudi Arabia, Qatar and Egypt.

Duquesne is in Beirut to provide French support for the recovery of Lebanon's energy sector, a mission that has already taken him to Egypt and Jordan.

"The two countries have expressed extreme goodwill and said they are technically ready to supply gas and electricity to Lebanon," which is almost completely without power, the diplomat said.

However, energy supplies would have to pass through Syria, which is subject to stringent US sanctions.

Duquesne said he would visit Washington over the next 10 days to discuss "exemptions" for Egyptian gas and Jordanian electricity supplied to Lebanon via Syria.

There, he will also meet officials from the World Bank, which is expected to finance energy deliveries.

Lebanon's political impasse has hampered efforts to resolve its worst-ever financial crisis.

The Lebanese pound has lost more than 95 percent of its market value to the dollar since 2019, and more than 80 percent of the population lives in poverty, according to the United Nations.

Last September, the IMF also criticized the Lebanese authorities, saying progress in implementing reforms remained "very slow".



Iraqi FM: We Informed Tehran that Factions Issue is for Iraq to Decide

Iraqi Foreign Minister Fuad Hussein (Asharq Al-Awsat)
Iraqi Foreign Minister Fuad Hussein (Asharq Al-Awsat)
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Iraqi FM: We Informed Tehran that Factions Issue is for Iraq to Decide

Iraqi Foreign Minister Fuad Hussein (Asharq Al-Awsat)
Iraqi Foreign Minister Fuad Hussein (Asharq Al-Awsat)

“How do we protect Baghdad from fire?" Iraqi Foreign Minister Fuad Hussein repeated this question as he reflected on the challenges his country faced in 2024. Asharq Al-Awsat spoke with him in London, just an hour after a ceasefire was announced between Israel and Hamas on January 15, 2025.

Hussein said Iraq had avoided war but warned that the danger remains.

Hussein described Iraq as having narrowly avoided war but warned that the threat of conflict still looms.

“The world views us differently now,” he said, acknowledging Iraq’s shifting global image. However, he stressed that Iraqis must address their own issues with armed factions.

“No one will solve these problems for us,” he added, whether Iran disagrees with them or a US president less friendly toward Baghdad and Tehran takes office.

As news of the Gaza ceasefire terms emerged, Hussein asked: “How did we get here? It came far too late, with a heavy human cost.”

Still, he expressed cautious optimism, referring to what he called the “Iraqi prophecy” from October 2023: “Every war leads to another—and there will be more.”

With Lebanon entering a new chapter and Syria transitioning after Bashar al-Assad, Baghdad is asserting its role in London with a broad agreement. Many interpreted the deal as carrying political weight far beyond the official statements. But Hussein candidly remarked: “Yes, it’s a historic agreement, but not in anticipation of Trump’s return.”

British Framework in Iraq

On January 15, Baghdad announced a £12.3 billion investment package from Britain—a landmark deal that Hussein says reflects "the deep ties between the two countries."

The agreement also includes a defense component.

“Instead of collective agreements with the anti-ISIS coalition, we’re working on individual security understandings with countries like France, Germany, and now Britain, to shape cooperation in security,” Hussein explained.

“In Iraq, we have two types of British forces: one as part of the coalition and another under NATO. We need discussions on how to manage this presence from security and military perspectives,” he added.

Asked if these moves were a preemptive response to potential sanctions or regional tensions, Hussein dismissed such claims.

“This isn’t about preparing for Trump’s return to the White House. These talks are purely about Iraq’s policies, its situation, and its bilateral ties with major powers,” he said.

Hussein’s visit to London followed a trip to New York, where Iraq assumed the presidency of the G77+China group, the largest bloc representing developing nations at the UN.

“This leadership strengthens Iraq’s diplomatic ties with the Global North and promotes peace and security globally,” Hussein said.

“It also boosts Iraq’s regional and international standing, including its relations with the US.”

He believes Iraq’s leadership of the group, which he referred to as the “Global South,” is a significant step for the country in the “post-war” era, reflecting “how the world now sees Baghdad.”

Trump’s Return

Donald Trump’s return to the White House has become the hottest topic in Iraq, reviving political tensions and memories of his first term. The renewed strain between Iraq and Iran highlights the impact of US policies on the region.

For Iraq’s top diplomat, it’s a moment to focus on pragmatism and Iraq’s delicate position.

“Trump was elected by the American people, and we respect that,” Hussein said.

“But US tensions with Iran affect the entire region, with Iraq caught in the middle. We share deep ties with both countries—historical, cultural, and economic—and the US has helped us fight terrorism under clear agreements.”

Hussein hopes for dialogue between Washington and Tehran but worries the tensions may persist. He takes comfort in Iraq’s growing awareness of the need to strike a balance.

“Iraqis are now discussing how to navigate between both sides, something that wasn’t easy before,” he said.

To raise awareness, Iraq launched a media campaign to highlight the risks.

“We worked hard to show people that Iraq is at risk. If you can’t convince your own people, you can’t convince the world. It wasn’t easy, but we succeeded in making it clear: Iraq must stay out of war.”

Iraq’s Tough Balancing Act

How has Iraq tackled its complex challenges? Hussein said the country is now openly addressing sensitive issues, including dealing with armed groups outside state control.

“Iraqis are having this discussion publicly,” he said, crediting Najaf’s religious authority for pushing to limit weapons to the state.

“Do we build a state or continue fighting endless battles?” Hussein asked.

“A state cannot exist alongside elements that undermine it. We need internal agreements to ensure no group can impose violence or war. This has been under discussion for some time,” he explained.

These debates began before the October 2023 escalation in Gaza, and the international community is closely watching for a clear resolution to Iraq’s internal debate.

“There are serious discussions happening within Iraqi society and among political leaders,” Hussein affirmed.

“It will take time, but proposals are on the table. Some suggest integrating armed factions into the Popular Mobilization Forces (PMF), which are legally part of the military,” he revealed.

“Others propose having these groups hand over their weapons to the PMF and shift to political roles. Whatever the approach, we must avoid any scenario leading to internal conflict,” said Hussein.

The focus includes three groups—al-Nujaba Movement, Kataib Hezbollah, and Kataib Sayyid al-Shuhada—that have carried out hundreds of attacks since October 2023 under the banner of “supporting resistance in Gaza.”

Iraq’s internal discussions may take more time, but the growing threats could complicate the country’s efforts. In November 2024, Hussein mentioned that Iraq had received “clear threats, some from Israel.” So what’s the situation now?

“The threat still exists,” Hussein said. “The level of threat doesn’t matter as much as the fact that the discussions are focused on Iraq’s own need to find solutions, not external pressure.”

On Iran’s recent comments, where Supreme Leader Ali Khamenei called on Iraqi factions to confront US forces, Hussein emphasized Iraq’s autonomy: “During my visit to Tehran on January 8 with the Prime Minister, we made it clear that Iraq’s internal issues are for Iraqis to decide. There are differences in Iran's public stance, but in the end, Iraq must make its own decisions.”

Hussein pointed to the challenges Iraq has faced, both domestically and internationally.

“The government has been through difficult times, but we’ve managed to get through it,” he said. Despite the ceasefire in Gaza, he remains cautious. “The tension still exists.”

“2024 was a very tough year for us, dealing with countries we don’t have strong relations with,” Hussein added.

"Iraq is in a region where tensions are still high. The question remains: How do we protect ourselves? The efforts from last year will need to be intensified in the coming period to keep Iraq stable and avoid war.”