The World Bank has granted Lebanon a $250 million loan aimed at alleviating persistent power cuts, according to the country’s finance ministry. Even before recent conflicts, Lebanon had been grappling with a severe shortage of imported fuel and inadequate infrastructure.
Lebanon’s finance minister announced preliminary approval to increase the World Bank loan for reconstruction from $250 million to $400 million.
Finance Minister Yassine Jaber, leading the Lebanese delegation to the International Monetary Fund (IMF) and World Bank spring meetings, made this announcement after meeting with World Bank Vice President Osama Weden.
In early March, the World Bank presented Lebanon with a $1 billion package for reconstruction, which included the initial $250 million loan, according to a March 12 statement from Prime Minister Nawaf Salam’s office. The new development signifies an expansion of that financial package.
Commitment to reform
After discussions with the senior World Bank official, Jaber stated that the loans “will be granted on a concessional basis, with a repayment period of up to 50 years.” He outlined the package distribution: “$250 million agreed upon and signed today for electricity issues, particularly transportation networks; $256 million for water; $200 million for agriculture; and $200 million for social affairs.”
While in Washington, Jaber and his delegation also met with IMF Managing Director Kristalina Georgieva. During a reception at the Lebanese Embassy, Jaber emphasized the new government’s commitment “to a bold and courageous reform program.” He added, “We are not undertaking these reforms to satisfy the IMF or anyone else. … We are doing them because we need them.”
Deputy U.S. Special Envoy to the Middle East, Morgan Ortagus, who attended the event, reiterated the need for reform: “We must move forward, and the only way is to strengthen the state, move forward with reform, and completely revitalize the country.”
Read more: World Bank presents $1 billion program for Lebanon reconstruction
Ongoing economic crisis
Lebanon has faced a deep economic crisis since 2019, triggered by decades of financial mismanagement and corruption, leading to the collapse of its banking system. The country defaulted on its sovereign debt in 2020, restricting access to dollar deposits and locking depositors out of their savings. The Lebanese pound’s value plummeted, inflation soared, and basic public services began to deteriorate.
The international community, including the IMF and the World Bank, has offered assistance, but most aid is contingent on the Lebanese government implementing a comprehensive reform agenda. Political deadlock over the years has stalled progress.
In March 2025, the World Bank estimated that Lebanon requires approximately $11 billion for rebuilding after recent conflicts.
