CFI Honorary President Lord Polak CBE and CFI Vice Chairman John Howell OBE MP have raised their concerns with the UK Government about the “potential misuse” of any loan packages from the International Monetary Fund (IMF) to Lebanon by the Hezbollah terror group.
In a Written Parliamentary Question, Lord Polak asked the Government what steps it is taking “to ensure that the IMF’s support for Lebanon is subject to strict oversight and monitoring, and has mechanisms in place to ensure it is not misspent”.
John Howell MP urged the Chancellor of the Exchequer to “advocate that any International Monetary Fund loan package to Lebanon includes conditions on political restructuring to restrict Hezbollah’s state capture abilities and prevent its control of government spending”.
In a further question, Mr Howell underlined “the potential misuse of IMF loan packages in Lebanon by Hezbollah”.
Treasury Minister Lord Agnew of Oulton emphasised the IMF’s “strict policies of oversight and monitoring” and the need to “establish adequate safeguards for the use of its resources” under its Articles of Agreement.
Economic Secretary to the Treasury, John Glen MP, confirmed that while there have been no formal discussions at the IMF Board on Lebanon, “the UK uses its seat on the IMF Board, in conjunction with other board members, to help ensure that programme conditions are consistent with the IMF’s mandate”.
The IMF has confirmed that discussions with Lebanon to resolve the economic crisis are ongoing, describing the challenges facing the country as “complex”. Hezbollah Secretary General Hassan Nasrallah has opposed “being put under the Fund’s mandate” and rejected any loan conditions that could “breach the country’s sovereignty”.
The Iranian-backed terror group has de facto control of Lebanon’s government and boasts the country’s largest military infrastructure, including an estimated arsenal of up to 150,000 rockets.
The UK Government proscribed Hezbollah in full in February last year, citing its “destabilising activities in the region” and commitment to “armed resistance to the State of Israel”.
The UK’s decision to designate Hezbollah as a terror organisation in its entirety came after cross-party parliamentarians regularly called for the group to be banned, in particular raising their concerns about the waving of Hezbollah flags on the streets of London at the annual Al-Quds Day rally.
