Marada MP Tony Frangieh said on Thursday that the draft law on financial recovery and bank restructuring "is not viable given its many shortcomings."
In an interview with the Houna Loubnan media outlet, Frangieh stressed that "the state cannot absolve itself of its responsibility by passing it entirely on to depositors or banks."
In this context, he asserted that "responsibility lies primarily with the successive governments and, consequently, with the state," specifying that "we can only mitigate the state's burden" without removing it altogether. "That would be a great injustice" to depositors, he lamented.
The Council of Ministers is scheduled to convene next week to discuss the Strategy for Financial Sector Recovery and Bank Restructuring, initially presented by the government of Najib Mikati in May 2022. The law was subsequently appealed by the Association of Banks in Lebanon (ABL) to the State Council a month later. The law was annulled on Tuesday by the State Council. The ABL and depositors are primarily concerned that the law will absolve the Central Bank of its obligations to banks, particularly its foreign currency obligations and its debts incurred at the onset of the crisis.
Regarding Marada’s stance on the law, Frangieh said, "Our party will refrain from stating our position at this time; we prefer to wait until the session. I have heard talks of proposed amendments to the law. We will reserve judgment until we have seen the final version."
In an interview with the Houna Loubnan media outlet, Frangieh stressed that "the state cannot absolve itself of its responsibility by passing it entirely on to depositors or banks."
In this context, he asserted that "responsibility lies primarily with the successive governments and, consequently, with the state," specifying that "we can only mitigate the state's burden" without removing it altogether. "That would be a great injustice" to depositors, he lamented.
The Council of Ministers is scheduled to convene next week to discuss the Strategy for Financial Sector Recovery and Bank Restructuring, initially presented by the government of Najib Mikati in May 2022. The law was subsequently appealed by the Association of Banks in Lebanon (ABL) to the State Council a month later. The law was annulled on Tuesday by the State Council. The ABL and depositors are primarily concerned that the law will absolve the Central Bank of its obligations to banks, particularly its foreign currency obligations and its debts incurred at the onset of the crisis.
Regarding Marada’s stance on the law, Frangieh said, "Our party will refrain from stating our position at this time; we prefer to wait until the session. I have heard talks of proposed amendments to the law. We will reserve judgment until we have seen the final version."
This Is Beirut
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