Parliament slowly moves forward in discussing Capital Control Law

Contrary to the last session, the ninth discussion session of the Capital Control Law passed quietly.

The examination reached the third article about establishing a special capital control committee.

The first clause of this article was approved, but with an amendment to the body responsible for appointing the members of this committee. 

The formation of this committee became in the hands of the cabinet as a whole and not in the hands of the prime minister only.
 
MP Marwan Hamadeh feared that with the complexity of these articles, the funds would depreciate before the law is implemented.

"Jamil al-Sayyed mentioned a proposal that is much simpler than all of these proposals. It was the one that preserved the rights of depositors and prevented transfers, and allowed the government and the Central Bank to set up the mechanism", Hamadeh stated. 
 
The parliament members also approved the second item of the third article, related to the mechanism of work of the Special Committee. They agreed to define its tasks according to implementation decrees issued by the government.

The discussion has reached the fourth article related to exceptions. The first clause in this article excludes new funds (fresh funds) from the provisions of the law. 

However, the term "new funds" was controversial, as several MPs considered that this term cancels the old funds, while the aim is to legislate capital control over the accounts at their actual value, without any haircuts on these accounts.
 
MP Halime Kaakour pointed out that the fourth article is dangerous because it distinguishes between depositors. 

"Although authorities must place no restrictions on future investment, and we need them now in the implementation of the recovery plan, I believe we cannot adopt unconstitutional articles," Kaakour noted. 


This point took the most significant part of the discussion, after which the MPs agreed to adopt the designation of new deposits and transfers instead of "new funds."
 
Deputy Speaker Elias Bou Saab told LBCI that the MPs have reached a formula that protects old funds and new deposits. 

Out of 14 articles, the discussion was halted at the fourth article, provided that the rest of the articles are discussed in the subsequent sessions.