“Global Insights – Tensions in the Middle East & Economic Aid to Ukraine”

Iran slams fresh Israeli airstrike on Beirut

Iranian Foreign Ministry spokesman Esmaeil Baghaei said on Friday that the attack occurred on the International Quds Day and that there was a global expression of abhorrence at the Israeli regime’s occupation and genocide in Palestine.

He said the occupying regime’s “criminal” move blatantly violated Lebanon’s territorial integrity and national sovereignty, PressTV reported.

Baghaei said the United Nations and guarantors of the ceasefire agreement hold the direct responsibility for the strike.

The senior Iranian diplomat urged the international community to take swift and effective measures to counter the Israeli regime’s acts of aggression and stop its repeated violation of ceasefire agreements.

He noted that the Israeli regime put forward “completely unfounded and baseless” pretexts to justify its aggression against Lebanon.

“The international community must take decisive strategies to counter the continuous violation of law by the occupying regime in the region — from Gaza to Lebanon and Syria — and the regime’s increasing threats against international peace and security,” Baghaei said.

Israel carried out the attack on the southern suburbs of Beirut on Friday, the first heavy bombardment there since a ceasefire agreement ended a war between the occupying regime and Hezbollah in November.

The United Nations Special Coordinator for Lebanon Jeanine Hennis-Plasschaert said the exchange of fire across the border between Lebanon and the occupied territories on Friday was “deeply concerning.”

Also on Friday, Israel conducted deadly strikes on southern Lebanon.

After enduring substantial losses over almost 14 months of conflict and not achieving its aims in the offensive against Lebanon, Israel had no choice but to agree to a ceasefire with Hezbollah. The ceasefire was implemented on November 27.

Since the initiation of the agreement, the occupying forces have been conducting attacks on Lebanon, violating the ceasefire, which encompasses airstrikes across the Arab nation.

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Crime, savagery nature of Israeli regime: Pezeshkian

The President of the Islamic Republic of Iran, Masoud Pezeshkian, criticized the silence of human rights claimants and politicians in the face of the crimes of the Zionist regime, stating that the nature of the behavior of the Zionist regime and those who support this criminal regime is nothing but crime, savagery, and the violation of human principles.

President Pezeshkian, speaking to reporters on the sidelines of the International Quds Day rally in Tehran on Friday, said, “We must ask the world, whose politicians claim to defend human rights, what sin the innocent and defenseless women and children, who are bombed by the Zionist regime with the unethical use of modern science and technology, have committed?”

He added that this behavior of the Zionist regime is beyond imagination and unacceptable.

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IMF approves $400 mn tranche to Ukraine

Executive Board of the International Monetary Fund (IMF) has completed the Seventh Review of the Extended Arrangement under the Extended Fund Facility (EFF) for Ukraine, which provides Ukraine with another tranche worth $400 mln, the IMF press service said in a statement.

“The IMF Board today completed the Seventh Review of the Extended Arrangement under the Extended Fund Facility (EFF) for Ukraine, enabling a disbursement of about $0.4 billion to Ukraine, which will be channeled for budget support,” the statement reads. This will bring the total disbursements under the IMF-supported program to $10.1 billion, according to TASS.

“Sustained reform momentum, progress at domestic revenue mobilization, as well as full and timely disbursement of external support during the program period are necessary to safeguard macroeconomic stability, restore fiscal and debt sustainability, and improve governance,” according to the Fund, which greenlighted a four-year program under the EFF mechanism with financing worth $15.5 bln for Ukraine in 2023.

“The slowdown [in Ukraine] is expected to continue in 2025,” the IMF noted. In particular, the country’s GDP is projected at 2-3% this year, at 4.5% in 2026, and 4.8% in 2027. Unemployment totals 11.6% in 2025, and the Fund’s experts expect it to decline to 10.2% in 2026, and to 9.4% in 2027.

“The program remains fully financed, with a cumulative external financing envelope of $148.8 billion in the baseline scenario and $162.9 billion in the downside scenario, over the 4-year program period,” IMF Managing Director Kristalina Georgieva said. “The enactment of the tobacco excise tax law is welcomed, as it supports the authorities’ commitment to implementing the National Revenue Strategy. Accelerated implementation of this strategy, including modernization of the tax and customs services, reduction in tax evasion, and harmonization of legislation with EU standards, is required to meet high-priority spending needs. This, combined with improvements in public investment management frameworks, medium-term budget preparation, and fiscal risk management, will support growth, investment, and fiscal sustainability,” she noted.

The authorities in Kiev “continue working to complete their debt restructuring strategy” and they are currently “focused on reaching agreement with the remaining holders of external commercial claims, including GDP warrants,” Georgieva added. “Reaching agreement consistent with the program’s debt sustainability objectives is essential to reduce fiscal risks and create space for critical spending,” she stressed.

“Sustained progress in anticorruption and governance reforms is needed. Additional efforts are required, including appointment of the new head of the Economic Security Bureau, completing the audit of the National Anti-Corruption Bureau, strengthening AML/CFT frameworks, and amending the criminal procedure code,” IMF Managing Director was quoted as saying.

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