In a statement released on Friday, the Central Bank of Lebanon sounded the alarm, calling on Parliament to act by approving reform laws to rescue the financial sector.
The Central Bank of Lebanon (BDL) emphasized that the delay in enacting reform laws weakens the financial position of the Lebanese State, the Central Bank of Lebanon, and the banks. It stated that if the situation continues, it will undermine the rights of depositors, which are being eroded over time.
The BDL noted that the delay in resolving the banking sector crisis will have serious consequences for the Lebanese society as a whole and for the country's economy.
It insisted on the need to accelerate the development of a "realistic and scientific plan" to restructure and reform the banking and financial system and to enact the necessary laws, while initiating negotiations with creditors.
Furthermore, the Central Bank emphasized that it is fully prepared to honor all the commitments dictated by law to support the reform plan.
Subsidies
The BDL urged all concerned parties, to whom it has provided detailed documents on the beneficiaries of subsidized dollars or other foreign currencies provided by the state, to begin implementing Law 240 of July 16, 2021. This law stipulates that beneficiaries are subject to an external legal and accounting audit.
The Central Bank recalled that it has sent correspondence on this matter to the concerned parties several times, urging them to get to work before any crimes that may have been committed during this period become statute-barred.
Alvarez & Marsal
Regarding the relationship between the BDL and a financial institution during the 2015-2019 period, the Central Bank clarified:
The Central Bank of Lebanon (BDL) emphasized that the delay in enacting reform laws weakens the financial position of the Lebanese State, the Central Bank of Lebanon, and the banks. It stated that if the situation continues, it will undermine the rights of depositors, which are being eroded over time.
The BDL noted that the delay in resolving the banking sector crisis will have serious consequences for the Lebanese society as a whole and for the country's economy.
It insisted on the need to accelerate the development of a "realistic and scientific plan" to restructure and reform the banking and financial system and to enact the necessary laws, while initiating negotiations with creditors.
Furthermore, the Central Bank emphasized that it is fully prepared to honor all the commitments dictated by law to support the reform plan.
Subsidies
The BDL urged all concerned parties, to whom it has provided detailed documents on the beneficiaries of subsidized dollars or other foreign currencies provided by the state, to begin implementing Law 240 of July 16, 2021. This law stipulates that beneficiaries are subject to an external legal and accounting audit.
The Central Bank recalled that it has sent correspondence on this matter to the concerned parties several times, urging them to get to work before any crimes that may have been committed during this period become statute-barred.
Alvarez & Marsal
Regarding the relationship between the BDL and a financial institution during the 2015-2019 period, the Central Bank clarified:
- In accordance with its policy since August 1, 2023, the BDL cooperates closely with the judicial authorities to uncover the truth. Thus, it has provided, directly or through the Special Investigation Commission, information, documents, and accounts that may shed light on the ongoing investigation following the forensic audit report conducted by Alvarez & Marsal. The relationship between the BDL and the financial institution in question is part of Alvarez & Marsal's audit report.
- Article 420 of the Penal Code prohibits the publication of any document relating to the investigation of a crime or offense before it is read in a public hearing. Therefore, any dissemination of information about a judicial investigation is against the law and is even considered a criminal offense punishable by law. Far from what is being said or forgotten, the current situation urges us to respect the law and allow the judicial authorities to do their work. Thus, the governing body of the Central Bank of Lebanon reaffirms its full and continuous commitment to shedding light on all truths while preserving the rights of the Central Bank within the framework of legality.
Read more
Comments