Lebanon has received fresh financial support from the World Bank, securing a $250 million loan aimed at improving its failing electricity system.
The total aid package is expected to rise to $400 million, according to the Lebanese Finance Ministry.
This new funding is part of a larger $1 billion reconstruction plan that the World Bank announced in March. The programme is designed to help Lebanon rebuild after years of infrastructure problems and the damage caused by a recent war with Israel that lasted over a year. That conflict, which ended last November with a shaky ceasefire, worsened Lebanon’s public services, already under pressure from economic collapse.
Finance Minister Yassine Jaber, who is currently attending meetings with the International Monetary Fund and World Bank in Washington, said the loans will be issued under favorable terms with a repayment period of up to 50 years. He explained that the full $1 billion package will target key sectors: $250 million for the electricity grid, $256 million for water infrastructure, $200 million for agriculture, and $200 million for social support.
During his visit, Jaber met with World Bank Vice President Osama Weden to discuss how the funds would be used. He stressed that Lebanon’s reform efforts are being driven by the country’s own needs rather than external pressure. These reforms are considered vital if Lebanon wants to rebuild its economy and secure continued international support.
The meeting also drew attention from the U.S., with Deputy Middle East Envoy Morgan Ortagus calling for deeper reforms and stronger government institutions as the only path forward for Lebanon.
Lebanon has been in financial turmoil since 2019, after decades of poor governance and corruption. The situation worsened when the country defaulted on its debt in 2020. Since then, the Lebanese pound has lost more than 90 percent of its value, plunging much of the population into poverty.
International donors, including the World Bank, have repeatedly asked Lebanon to implement economic and political reforms as a condition for aid. Despite numerous promises from its leaders, progress has been slow.
The recent boost in aid shows that the international community still sees potential in helping Lebanon recover. But how far that help will go depends on whether the government can finally deliver on the changes the country desperately needs.