Posted in: 23/04/2022 – 16:28
In a statement on Saturday, the Association of Banks in Lebanon rejected “in full and in detail”, the latest draft of the government’s financial recovery plan, which aims to extricate the country from an economic collapse that began in 2019. The association considered the plan “disastrous” because it casts “almost part of the losses that resulted from the policies.” adopted by the state, its successive governments, and the Banque du Liban, on the responsibility of banks and depositors. Lebanese banks have been a major lender to the government for decades, helping to finance a country that financially collapsed in 2019 after protests accusing it of being profligate and corrupt.
The Association of Banks in Lebanon announced on Saturday that it rejects, “in whole and in detail”, the latest draft of the government’s financial recovery plan, which aims to get the country out of the country. economic collapse It started in 2019.
In a statement, the association described the plan as “catastrophic” because it casts “almost part of the losses that resulted from the policies adopted by the state with its successive governments and the Banque du Liban” on the banks and depositors. The government estimates the losses of the financial sector at about 72 billion dollars.
The association pointed out that it “assigned its legal advisors to study and present a range of judicial procedures to protect and collect the rights of banks and depositors.”
Lebanese banks have been a major lender to the government for decades, helping to finance a country that collapsed in 2019 after protests accusing it of being profligate and corrupt.
The collapse prevented depositors from accessing their savings and the local currency lost more than 90 percent of its value. The Association of Banks in Lebanon rejected an earlier draft of the plan in February, saying it would lead to a loss of confidence in the financial sector.
It is noteworthy that the association’s approval is not necessary for the government to start implementing a plan, but experts say that its support from the banking sector can contribute to resolving the crisis.
The current draft provides for a series of financial reforms, including reforming the banking sector and setting maximum limits on the amount depositors can recover from their accounts.
Earlier this month, Lebanon managed to reach an expert-level agreement with the International Monetary Fund to benefit from the “Extended Fund Facility” for a period of 46 months, according to which Lebanon requested access to the equivalent of about three billion dollars.
But access to these funds is subject to the implementation of a large number of economic reforms and restructuring of the financial sector.
FRANCE 24/AFP