Houthis set up joint operations rooms in Lebanon and Iraq: WSJ

The International Monetary Fund (IMF) plans to expedite talks with Iraq and Lebanon to provide crucial financial and policy support, according to the IMF's managing director Kristalina Georgieva. Iraq has shown increased interest in securing assistance from the Washington-based fund, while Lebanon continues to face economic challenges exacerbated by the ongoing regional conflict.

Georgieva emphasized that the IMF will provide both monetary aid and policy support to Iraq, while ongoing discussions with Lebanese authorities are nearing a potential programme agreement. Iraq's economic and security situation has deteriorated significantly since the onset of the Iran war in February, prompting Prime Minister Ali Al Zaidi to advocate for international investment during the UN General Assembly in New York last month.

Lebanon's reliance on imports makes it particularly vulnerable to disruptions in shipping and energy supplies, as well as the lingering effects of a severe economic crisis that began in 2019 and is projected to contract by 6.4% in 2026. The IMF is assessing possible modifications to Lebanon's bank resolution law to align with international standards, with a breakthrough expected by the end of 2026, according to the governor of Lebanon's central bank, Karim Souaid.

Georgieva acknowledged the efforts of Gulf governments in implementing reforms, which have helped cushion the impact of the ongoing crisis. She noted that the support these countries provide would have been even more critical had they not taken steps to build buffers against potential shocks.