Lebanon's financial recovery depends on security and political reforms

Economy Minister Amer Bisat said Lebanon needs security and political reforms alongside economic measures for recovery, and the military reported completion of the first phase of a plan to disarm non-state groups; a draft fiscal gap law endorsed by some ministers is awaiting parliamentary action.

Lebanon is attempting to chart an economic recovery after a prolonged financial crisis and damage from the 2024 conflict. Economy Minister Amer Bisat told the Associated Press that security and political reforms are as important as economic changes. The cabinet met after the military reported progress on a plan to disarm non-state groups and expand deployment in southern Lebanon. The government has also endorsed a draft fiscal gap law intended to measure bank losses and open a path to return depositors' funds, though the law faces criticism. Current status: - Economy Minister Amer Bisat said security and political reforms are required alongside economic measures to restore confidence and enable recovery. - The Lebanese military reported completion of the first phase of a plan to remove weapons from non-state groups and expand deployment in the south, while Israel has said some armed elements remain present in areas the military says it controls. - A draft fiscal gap law was endorsed by Bisat and other ministers to quantify bank losses and propose a mechanism for depositors, but its passage in parliament is unclear and it has drawn criticism. Summary: The minister framed security and political steps as central to restoring confidence alongside fiscal and banking reforms. Parliamentary action on the draft fiscal gap law is undetermined at this time.