The Association of Banks in Lebanon addressed an open letter to the three presidents, as well as to all Lebanese citizens—particularly depositors—in which it expressed its opposition to the contents of the draft law on the financial gap, whose ninth version was recently leaked.
The Association said that “the draft contains serious shortcomings, both in substance and in form. It includes provisions that could dangerously undermine the banking system and its sustainability, while prolonging the economic recession.”
It added that “it is unacceptable for the state to evade its responsibilities and shift them onto the banks, thereby leading to the liquidation of the sector and denying depositors their right to recover their funds.”
In its letter, the Association of Banks questioned: “Who will bear the losses suffered by depositors resulting from the liquidation of commercial banks? And how can this approach be reconciled with repeated statements asserting that rebuilding the banking sector is essential to Lebanon’s recovery and future growth?”
The Association also proposed a plan based on the following pillars:
Ensuring that the Banque du Liban and the banks honor their contractual obligations toward depositors, as well as the state’s guarantee to the Banque du Liban in accordance with Article 113 of the Code of Money and Credit.
Guaranteeing the restoration of confidence and credibility in the banking sector, as well as financial stability.
Returning deposits by allocating the necessary assets of the Banque du Liban and the state to the implementation of their obligations, while significantly reducing the unfair burden imposed on banks by the draft law.
Restoring confidence in the Lebanese economy by reviving growth and financial sustainability.
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