Lebanon's Finance Minister Yassine Jaber has warned that delays in approving the $250mn World Bank loan allocated for reconstruction raise concerns that the funding could be cancelled, LBCI reported on November 6.

Speaking to LBCI after a meeting with a World Bank delegation, Jaber said he had been informed in Washington, a message reiterated during the meeting, that the final deadline for Lebanon to approve the loans granted by the World Bank is the end of the year.

The World Bank Board of Executive Directors approved $250mn financing to Lebanon to support the most urgent repair and reconstruction of damaged critical public infrastructure and lifeline services, and the sustainable management of rubble in conflict-affected areas back in June, following Israeli strikes on southern parts of the country and central Beirut.

Jaber described the loan as "seed funding" for a broader reconstruction fund, with the aim that it could eventually grow in support if the first payment goes through.

As part of the loan, the World Bank said that disbursal will be contingent on the government's ability to demonstrate "transparent, accountable, and results-driven management of reconstruction projects", with the newly formed government of Joseph Aoun previously stating under his leadership the post-war government would seek to be entirely transparent to attract funding.

Previous World Bank estimates suggested that the country would need approximately $1bn for total reconstruction following the recent Lebanon-Israel conflict, divided into four parts, each with a scalable tranche system.

“This framework offers a credible vehicle for development partners to align their support, alongside continued progress on the Government’s reform agenda, and maximise collective impact in support of Lebanon’s recovery and long-term reconstruction,” Jean-Christophe Carret, World Bank Middle East Division director, said in a statement in June.

The fact that Lebanon’s government is already running into difficulties following the first tranche may put a stop to the later payments, as it indicates the country has several structural issues to address, including the case of Hezbollah, which has not yet handed over its weapons to the Lebanese government.

It is unclear why the Lebanese government is struggling to repay its debts, but the country’s economy has been in a state of decline for several years.

According to Blom Investment Bank, the country’s annual inflation rate in September 2025 stood at around 14-15%, while a decrease from the 2023 war peak of 200% it is still eroding into savers' purchasing power. Meanwhile, the World Bank previously estimated GDP growth at around 3.5-4.7% for 2025, a cautious estimate, according to some economic watchers in Beirut. However, the broader economy has been largely spared from the feud between Israel and Hezbollah.

However, the Aoun government has struggled to get a handle on the disparate groups inside the country, as per the constitution, including the ongoing case of Hezbollah, which, despite being decapitated, is still a force to be reckoned with in internal political circles. 

Israel launched its military offensive against Lebanese Hezbollah forces on October 8, 2023, with attacks continuing until today, despite a truce being initiated in November 2024.

Under that truce, Israel was supposed to withdraw its troops from southern Lebanon by January 26 fully, and was later pushed back until February, yet despite that, attacks have continued.

Despite the official truce, Israel has continued its attacks against targets inside Lebanese territory allegedly linked with Hezbollah.

The IDF wrote on November 5, “Earlier today, the IDF attacked and eliminated, under the leadership of the Northern Command and through the Air Force, Hassan Jaber Diab, a terrorist in the 'Radwan Force' unit of the terrorist organisation Hezbollah, who advanced terrorist routes against the State of Israel and its citizens.”