The Lebanese Economic Organizations (LEO) said, in a statement on Wednesday that has been an early advocate of the adoption of a rescue package designed by the government with IMF support that follows long-standing IMF principles and responds to the aspirations of the Lebanese people.

“We therefore welcome and support the Staff Level Agreement (SLA) that was announced on the 7th of April 2022,” the LEO expressed.

It continued: “We hope to work hand in hand with the government and the parliament to ensure the IMF program is a resounding success. Members of LEO were shown limited information surrounding the agreement, and while we acknowledge that some parts will remain confidential, we encourage the government to make the rest public to ensure transparency and improve buy-in. Lebanon needs a Marshall-like plan to revive the economy and spur a sustainable, job-creating growth. The plan should revolve around creating the right business environment to allow the private sector to thrive including through the promotion of import substitution by improving the country’s external competitiveness. This should expand our productive sectors and increase significantly exports of goods and services, reducing the current account deficit significantly while improving on the business ecosystem of the various economic sectors. LEO expresses its full support in proceeding with a constructive financial restructuring plan. The country needs an economic recovery and an IMF program is an essential part of it. In that regard, we truly believe in a fair allocation of the losses among all concerned stakeholders without absolving the state of its financial responsibilities while putting public debt on a downward trend. Such an allocation would greatly improve depositors’ recovery. A healthy and solid banking sector is critical to private sector activity and economic growth. LEO considers that any recovery would be impossible without comprehensive governance reforms of public companies especially in the electricity sector given its importance for business activity. State owned enterprises should become forward-pulling anchors for the economy instead of weighing down on the private sector. We expect that the establishment of an Asset Management Company managed by professionals will significantly boost the revenues of said enterprises, therefore providing value for future generations while creating fiscal space, boosting the necessary social safety nets, contributing to ease of doing business and eventually, improving depositor gradual redemption. As the country finally sets on the journey to recovery, the private sector will be the main engine for growth, as it has always been the case in Lebanon. It is therefore urgent and necessary to tackle the informal economy. No measure of reform can be sustainable or enforceable otherwise, and the systematic destruction of legitimate companies will continue. A successful IMF program will unlock a multitude of financing schemes which are urgently needed to address our endemic economic, financial, social and basic infrastructure problems. LEO will spare no efforts in pushing for the needed reforms to put the economy on the right path and improve its outlook. We stand ready to contribute to the success of the program and will be monitoring closely its implementation to ensure it will remain on the right track.”

Source: National News Agency – Lebanon