World Bank Approves Larger Reconstruction Loan for Lebanon Amid Economic Crisis

Lebanon has secured preliminary approval from the World Bank to boost the value of a reconstruction loan from $250 million to $400 million, Finance Minister Yassine Jaber announced on Wednesday. The increase is part of a broader effort to support the country’s recovery amid one of the worst economic crises in its history.

In a statement, Jaber confirmed that discussions with the World Bank had yielded positive results, allowing Lebanon to access additional funds for critical infrastructure repairs and economic rehabilitation. The increased loan is expected to be used to accelerate reconstruction projects across key sectors, including energy, transportation, healthcare, and education.

The announcement comes just weeks after Lebanese Prime Minister Najib Mikati revealed in March that the World Bank had outlined a $1 billion reconstruction plan for the country. The original framework included a $250 million loan, which has now been revised upward following further negotiations.

Lebanon has been grappling with a prolonged financial meltdown since 2019, marked by a collapse in the local currency, triple-digit inflation, and widespread shortages in fuel, electricity, and basic goods. Much of the country’s infrastructure has deteriorated, and public services have been severely strained.

The World Bank’s expanded financial support is seen as a crucial step in helping Lebanon stabilize and rebuild. According to officials, the loan will be channeled into projects designed to generate jobs, support vulnerable populations, and restore essential services, all while reinforcing efforts to implement much-needed economic reforms.

While the approval is still in its preliminary phase, the Lebanese government is expected to finalize the terms with the World Bank in the coming weeks. If confirmed, the loan increase will represent a significant injection of funds at a time when Lebanon continues to struggle with limited access to international financial markets.

The World Bank has been one of Lebanon’s key partners in development financing, and this renewed commitment signals continued international engagement despite concerns over governance, transparency, and slow reform progress.

Minister Jaber emphasized that further cooperation with the World Bank will depend on Lebanon’s ability to follow through on fiscal and structural reforms. “This approval reflects growing confidence in our recovery plans,” he said, “but it also places a responsibility on us to ensure these funds are used effectively and transparently.”

The Lebanese government hopes the increased funding will help pave the way for broader international support and unlock additional aid from other donors and financial institutions.