Future Loans Not Discussed with Hizbullah
The International Monetary Fund denied media reports that it had discussed possible loans with Hizbullah as Lebanon gets ready for the June 7 parliamentary elections.
The Financial Times and the New York Times reported Wednesday that Hizbullah has held talks with the IMF and the European Union to try to secure financial support for Lebanon if the group and its allies win the polls.
"The IMF has not negotiated with Hizbullah members or sympathizers in Lebanon over a possible loan," the IMF said in a statement.
It said an IMF mission visited Beirut in March for annual consultations on economic policies and met with Lebanon”s main political parties as part of standard outreach activities that also include talks with non-governmental organizations.
During the talks, it met with Abdel Halim Fadlallah, then deputy director of an economic research center that has close ties with Hizbullah, to explain the IMF”s visit and "gather support toward economic reforms," according to the statement.
"By no means were future Fund arrangements discussed," it added.
Ali Fayad, a Hizbullah candidate who also heads the party”s think-tank, told the Financial Times that his party was considering the economic risks of a possible punishment for Lebanon if Hizbullah wins the elections. The party is also discussing such prospects with the EU and the IMF, he said.
The EU says it makes no distinction between Hizbullah and other parties in Lebanon, and will work with any democratically elected government.
The EU provides about $84 million a year to Lebanon and the IMF provides about $114 million.