Finance Minister initiates talks on government borrowing from BDL

The Lebanese Finance Minister, Youssef Khalil, stated upon arriving at the cabinet session that there is currently no legislation regarding the government's borrowing from the Central Bank of Lebanon.

Within minutes of the session's start, information circulated at the grand serial, claiming that caretaker Prime Minister Najib Mikati requested Khalil to initiate the necessary contacts to take all the measures that facilitate the work of Banque du Liban and find the appropriate formula to approve what needs to be approved as soon as possible and to keep the Cabinet informed of the results gradually.

In this context, sources indicated that Mikati tasked the Finance Minister with preparing a draft law for borrowing after consulting with the acting governor of BDL, Wassim Mansouri, and other BDL deputies, ensuring that the proposed formula is robust.

On the other hand, governmental sources denied that the task was given this way. However, the Finance Minister indicated that he was tasked with consulting with the deputies of the acting governor.

Furthermore, sources within BDL stated that the acting governor and other deputies are awaiting the Finance Minister's proposals, emphasizing that state funding cannot proceed without a clear time frame, financial guidelines, and, most importantly, a mechanism to recover the funds.

The sources also pointed out that halting state financing will contribute to the current monetary stability, as the Central Bank will no longer provide dollars or Lebanese pounds.

Moreover, the PM also received financial and accounting audit reports from the Central Bank of Lebanon conducted by KPMG and Oliver Wyman. These reports are unrelated to the Forensic Audit report of Alvarez & Marsal.

The discussions between the Finance Minister and government officials are crucial as Lebanon faces a severe financial crisis. The government's ability to secure funding is essential to stabilize the country's economy and ensure economic sustainability.