Lebanon's new government will negotiate with the International Monetary Fund for a new programme and will work to deal with the country's financial default and public debt, according a policy statement approved by the cabinet late on Monday.

The statement, a copy of which was reviewed by Reuters, said the government would work for an economical revival that could only be achieved through restructuring the banking sector.

The statement did not include language used in previous years that was seen to legitimize a role for the Iran-backed Hezbollah in defending Lebanon, saying instead "we want a state that has the decision of war and peace".

(Reporting by Laila Bassam; Writing by Tom Perry; Editing by Alison Williams)