As part of the discussions underway on several levels to pave the way for socio-economic recovery in the country, financial circles are stressing that one of the factors in such a recovery is the restructuring of banks, with a view to revitalize the banking sector. However, before the issue of bank restructuring can be addressed, a vital question must be asked: will the State reimburse depositors? This begs other important questions: will the State reimburse all deposits, or just a part of them? When? And on what basis?
The aforementioned financial circles stress that there can be no question of restructuring the banks before clear answers are provided to these questions, especially as it has been firmly established that the State is primarily responsible for the squandering of the Banque du Liban’s foreign currency reserves. As such, the State is obliged to reimburse depositors for the money it has embezzled and wasted as a consequence of non-governance, which is more devastating than bad governance!
The State’s responsibility is not limited to this last point. Financial sources indicate that, according to the latest mission to Beirut by a delegation from the International Monetary Fund (IMF), the IMF made a precondition for negotiations and an agreement with Lebanon that the government must draw up a realistic budget, reflecting the real situation in the country, not a pipe dream budget based on suppositions and virtual figures.
