Lebanese Prime Minister Hassan Diab met on Tuesday with a delegation from the International Finance Corporation (IFC), a member of the World Bank Group, to discuss assistance to rescue the country’s economy from collapsing.
Sources described the meeting as “excellent,” while the Central News Agency said there was no decision taken to privatize the public sectors.
“Finding a solution to the economic crisis should be mainly achieved through partnership between the public and the private sectors, particularly the airport and transportation sector,” the sources said.
Lebanon has the world's third-highest debt-to-GDP ratio and has been sliding towards default in recent months, with tight capital controls and a currency devaluation already hitting purchasing power.
In a statement Tuesday, Diab’s office said the PM met with the delegation with the ministers of economy, industry, energy and public works.
It said the meeting was devoted to discussing projects of cooperation between the public and private sectors, in addition to the development of the airport and the transportation sector.
Lebanon has still not decided whether to pay $1.2 billion in Eurobonds that reach maturity on March 9 or to default on its debt.
Diab's government won parliament's confidence last week and it quickly requested the International Monetary Fund's advice on tackling its economic crisis.
As the private sector arm of the World Bank and the world's largest development finance institution, the IFC’s mission is to work with the private sector in developing countries to create markets that open up opportunities for all.
Lebanon has requested help from several international institutions following protests that erupted in October across the country against government corruption, tax rises and the political elite, forcing Saad Hariri to resign as prime minister.
Since November, banks have been imposing strict measures on capitals and withdrawals.
They have blocked nearly all transfers abroad and curbed dollar withdrawals - including limits of less than $200 a week.
