BEIRUT (Reuters), The International Monetary Fund announced on Thursday that it reached a preliminary deal with Lebanon to extend its four-year-old extended fund facility. However, the fund will only approve full funding if Beirut enacts a set of reforms.

The IMF agreement is widely believed to be the only option for Lebanon to plan a solution to its worst crisis, the financial and economic meltdown.

How dire is this situation?

According to the World Bank, this collapse is one of the most severe since mid-19 century. It has been estimated that the gross domestic product will plummet to $20.5 trillion in 2021, down from $55 billion in 2018.

Lebanese Pound has seen a drop in value of more than 90%, driving up costs and destroying purchasing power. The monthly salary of a soldier, which was once equivalent to $900, now amounts to about $50.

According to the U.N. agency ESCWA, poverty rates have risen dramatically in the population of 6.5 million people, and around 80% are considered poor. UNICEF reported that more than 50% of households had at least one child skip a meal last September. This compares to just over 30% in April 2021.

Financial system suffered staggering losses. According to the September government estimate, total losses were $69 billion. Last month, the deputy prime minister stated that the total losses were expected to rise to $73 billion if the crisis isn’t addressed.

The banks of Lebanon are now paralysed. U.S. dollars accounts have been blocked from saving money. The exchange rate for withdrawing local currency can erase as high as 80%. Victoria Nuland from the United States stated during an October visit in Beirut that Lebanese citizens deserved to be able to see where their money has gone.

Lebanon’s dependence on imported fuel means that it is now facing an energy shortage. Power was scarce even before the crisis. Nowadays, households have the luxury of receiving power for more than just a few hours per day. Prices for fuel have increased dramatically. Shared taxis, once a common form of transport that was popular, now cost about 35,000 pounds.

The largest exodus of Lebanese since 1975-1990’s civil war has been the Lebanese. Many people don’t plan to return, believing that their savings have been lost. Gallup’s survey of 2021 respondents found that 63% want to move permanently. This is an increase from the 26% who wanted it before the crisis.

– Doctors were among the first to go. The World Health Organization stated that most hospitals have a 50% occupancy rate. According to the World Health Organization, around 40%, mostly specialist doctors and 30%, nurses, have either emigrated permanently, or work part-time in another country.

The media and official talk of Lebanon’s “failed state”. In December, President Michel Aoun said that Lebanon was in danger of “falling apart.” The top Sunni Sunni clergyman in Lebanon warned that there was a danger of complete breakdown after protests over fuel shortages last August.