BEIRUT: Lebanon’s new government aims to make progress towards starting full negotiations for an IMF deal by the end of this year or early next, but is not expecting funds to be dispersed before elections in March, a minister said on Friday. In an interview with Reuters, economy minister Amin Salam also said Lebanon has lost precious time in dealing with the economic meltdown because of a crisis over the probe into the Beirut port explosion which has paralysed cabinet.

Lebanon is suffering one of the world’s sharpest ever economic depressions and an IMF deal is widely seen as the only way for it to secure aid. Salam said that figures crucial to progress on the IMF track - including Lebanon’s estimate of losses in its financial system - would be sent to the Fund as early as next week.

While there was no agreement yet on how the losses should be distributed, “opinions are much closer and the picture is much clearer”, he said. He declined to give figures which he said it was up to the finance ministry and central bank to provide. But he indicated he did not expect the government to clinch a full IMF agreement before parliamentary elections set for March 27, saying no money was expected to be dispersed before the vote, after which a new cabinet would be formed.

IMF talks broke down last year because the banks, central bank and Lebanon’s ruling politicians could not agree with the previous government on scale of vast losses estimated at the time at around $90 billion, and how they should be shared out. An IMF programme is widely seen as the only way Lebanon can unlock desperately needed aid.

Prime Minister Najib Mikati took office in September vowing to remedy one of the world’s sharpest ever depressions.

‘HUGE HOPES’

His government was already facing a difficult path to pave the way for an IMF deal before Lebanon slid into yet another crisis, this time linked to the probe into the port blast which has ignited a new political conflict and deadly street violence.