The Syndicate of Traders and Importers of Alcoholic Beverages issued a statement on Saturday denouncing the Gap Law, which they said shifts the state’s responsibilities onto traders and businesses.
“While respecting the draft presented by the Prime Minister concerning financial restructuring and the recovery of deposits, the currently proposed formula—particularly with regard to loans and commercial facilities—contains a fundamental flaw that threatens the productive economy and renders the law’s practical implementation nearly impossible,” the statement said.
The syndicate described the imposition of “additional and unfair burdens” on commercial and industrial companies as “unacceptable.”
“These companies borrowed from banks at high interest rates, while at the same time financing the real economy and extending significant interest-free credit to their customers, in amounts far exceeding what they themselves borrowed from banks,” the statement noted.
The statement pointed out that with the outbreak of the financial crisis and Banque du Liban’s adoption of the 1,507 Lebanese pound exchange rate as the official rate, “the customers of these companies settled their obligations either on the basis of that rate or through bank checks (‘lollars’), forcing the companies to repay their bank loans under the same terms.”
According to the statement, “a significant number” of these customers went bankrupt as a result of the financial crisis and were unable to meet their obligations, thereby inflicting additional direct losses on traders.
“How can these companies today be asked to bear up to 30% of the value of loans that had already been repaid on the basis of the 1,507 Lebanese pound exchange rate or through bank checks (‘lollars’)?” the syndicate asked.
“Insisting on imposing such a high rate on companies,” it warned, will inevitably lead to widespread closures of productive institutions, the dismissal of thousands of employees, and a severe blow to what remains of the economic cycle.
“The Syndicate of Traders and Importers of Alcoholic Beverages propose a clear and explicit amendment to the draft law, limiting the contribution of commercial and industrial companies with respect to loans and commercial facilities to a maximum of 2%,” the statement added.
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