Lebanon announced a new 24-member cabinet on February 8 led by Prime Minister Nawaf Sala, local media reported.

The cabinet formation, which follows three weeks of negotiations with political parties, comes as Lebanon grapples with its worst economic crisis in decades, with the Lebanese pound having lost 90% of its value and the country defaulting on $30bn in international bonds. Since October 2022, Lebanon has experienced political paralysis following the failure to elect a president after Michel Aoun's term ended, while the previous Mikati's government continued in a caretaker capacity due to the presidential vacuum.

"This will be a government of reform and rescue," Salam said after the announcement. The cabinet is scheduled to hold its first session on February 11 at the presidential palace in Baabda.

The government faces immediate challenges, including implementing reforms demanded by the International Monetary Fund to unlock a crucial $3bn support package. The World Bank estimates Lebanon needs $8.5bn for reconstruction following recent conflicts.

Former economy minister Yassin Jaber was appointed finance minister, tasked with overseeing IMF-required reforms and restructuring the country's long-delayed debt. Amer al-Bassat, a former BlackRock executive specialising in emerging markets, takes the economy portfolio.

The new administration must address an $80bn financial gap - four times Lebanon's economic size - while navigating complex sectarian interests and negotiations with bondholders and bank shareholders.

The formation ends a leadership vacuum that began when the country failed to elect a president after Michel Aoun's term ended in 2022, leaving previous premier Najib Mikati's government in a caretaker capacity.

Other key appointments include Tarek Mitri as deputy prime minister and Youssef Reggi as foreign minister. President Joseph Aoun signed the cabinet formation decree after accepting Mikati's resignation.

The IMF's last mission to Lebanon in May described previous reforms as "insufficient for recovery," citing the absence of a clear financial system strategy.

Lebanon's banking sector collapsed in 2019, trapping depositors' savings and triggering widespread economic hardship.

Revitalising the banking sector will be crucial for improving Lebanon's economic fortunes, especially after previous attempts failed with legislators, lenders, and the central bank unable to agree on a plan to restructure the financial system and its defaulted Eurobonds.