BEIRUT: The World Bank Tuesday approved a $5.2 million loan to support Lebanon’s Finance Ministry in fiscal policy and debt management as part of the Second Financial Management Reform Project.
The project aims to enhance the efficiency of financial management systems and promote effective use of public resources in Lebanon, the World Bank said in a statement.
“High levels of debt, large fiscal deficits and lack of fiscal space for public investments are major constraints to Lebanon’s economic growth,” the statement quoted Ferid Belhaj, World Bank director for the Middle East region, as saying.
“The Finance Ministry has embarked on many notable structural reforms including public financial management. The reform agenda is supported by several donors and activities are being coordinated to optimize synergies and to take full advantage of all partners’ added values and areas of specific expertise.”
According to the statement, reforms will be introduced in ministry departments concerned with budget preparation, commitment controls and liquidation procedures.
A version of this article appeared in the print edition of The Daily Star on April 16, 2014, on page 5.