Banks continue to discuss draft law to bring financial order back into balance

Lebanon Economy
02-02-2023 | 10:18
High views
Share
LBCI
Share
LBCI
Whatsapp
facebook
Twitter
Messenger
telegram
telegram
print
Banks continue to discuss draft law to bring financial order back into balance
Whatsapp
facebook
Twitter
Messenger
telegram
telegram
print
3min
Banks continue to discuss draft law to bring financial order back into balance

While the Finance and Budget Committee continues to discuss a draft law to bring financial order back into balance, banks continue to criticize the formula in which this proposal reached the Parliament, claiming that it contains numerous ambiguous clauses that require clarification and practical amendments from the lawmakers to be enforceable.

Banking sources commented on a sentence in the proposal that read: "Treatment of part of the Central Bank's obligations to banks in a way that assures coverage of debts that may be owed to banks from the Central Bank."
 
Banking sources deemed this pledge to be favorable in principle since it indicates that the state will make some contribution to assisting the Banque du Liban in paying its debts to banks so that they may then pay depositors.
 
However, there are a lot of questions about this issue. The uncertainty arises from two primary points when the proposal mentions paying for a portion of the Central Bank's commitments to banks: What does the word "portion" mean? And secondly, what approach will be taken to assist the Central Bank in this regard?
 
According to banking sources, there is a significant difference between the state pledging to secure 10% of these commitments, for example, and securing 60, 70, or 80% of these debts.
 
In the first scenario, the issue will continue to be unsolvable. In the second scenario, the process of guaranteeing the people's deposits would have begun.
 
Banking sources stated that since the governor of the Banque du Liban revealed the amount of money that the authority withdrew from depositors, which exceeds 60 billion dollars, the parliamentary discussion must begin from this number to determine the amount that the state should secure to be able to address the deposit dilemma.
 
Banking sources claim that in the absence of such actions, things will continue in an ambiguous way that neither advances nor delays.
 

Breaking Headlines

Lebanon News

Lebanon Economy

News Bulletin Reports

Banks

Lebanon

Finance

Economy

Crisis

LBCI Next
President Aoun emphasizes importance of agricultural sector, highlights efforts to boost exports to Gulf countries
Recommended For You
d-none hideMe
LBCI
Lebanon Economy
07:05

Lebanon's central bank bans interactions with Hezbollah's Al-Qard Al-Hassan: Circular

LBCI
Lebanon Economy
2025-07-14

Lebanon's central bank partners with US firm to boost financial oversight

LBCI
Lebanon Economy
2025-07-11

Fuel prices shift in Lebanon

LBCI
News Bulletin Reports
2025-07-08

Billions needed, but no plan: Lebanon’s social spending crisis deepens

Subscribe to our VOD
SUBSCRIBE
Our visitors readings
d-none hideMe
LBCI
Lebanon News
2025-07-08

Lebanon at a crossroads: Tom Barrack on the US paper, Hezbollah, and the future of unity — here is the full interview

LBCI
Middle East News
00:14

Death toll from south Syria violence rises to 203

LBCI
News Bulletin Reports
13:10

A 'Druze crisis': Syria-Israel security deal in jeopardy amid Sweida clashes and Israeli strikes

LBCI
Middle East News
02:06

Iran seizes foreign tanker for smuggling 2 million liters of fuel

Videos
d-none hideMe
LBCI
Lebanon News
08:59

Pregnant journalist Petra Abou Haidar attacked in road rage assault

LBCI
Lebanon News
2025-07-01

Massive fire erupts at unregulated dumpsite in Bchannine, Zgharta district

LBCI
Lebanon News
2025-06-10

Clash between Lebanese Army and residents of Deir Qanoun Al Nahr results in injuries (Video)

LBCI
Lebanon News
2025-06-04

Mexico dedicates garden around Lebanese Emigrant Statue in Beirut to mark 80 years of diplomatic ties

LBCI
Lebanon News
2025-05-19

President Aoun to seek Egyptian support for Lebanese Army in detecting explosives and tunnels

LBCI
Lebanon News
2025-05-15

LBCI Exclusive: US steps up pressure on Hezbollah, Morgan Ortagus details sanctions and vision for Lebanon's future

LBCI
Lebanon News
2025-05-11

Kuwait rolls out official welcome for Lebanon's President Aoun – video

LBCI
Lebanon News
2025-05-11

Security incidents temporarily disrupt voting in several Akkar and Minieh-Danniyeh centers

LBCI
News Bulletin Reports
2025-05-09

EU ambassador says 'we are not just donors, but genuine partners to Lebanon': Insights from exclusive LBCI interview

Most read
d-none hideMe
24 hours
7 days
Month
LBCI
Lebanon News
08:59

Pregnant journalist Petra Abou Haidar attacked in road rage assault

LBCI
Lebanon News
08:53

Israeli airstrikes kill 12 in Lebanon's Bekaa, including Syrian refugees

LBCI
News Bulletin Reports
12:48

Inside Lebanon's biggest drug lab: Lebanese Army tightens grip on Bekaa drug lords

LBCI
Lebanon News
10:10

Lebanon's Press Club condemns assault on journalist Petra Abou Haidar, calls for accountability

LBCI
Lebanon News
12:23

Hezbollah calls Israel east Lebanon strike a 'major escalation'

LBCI
Lebanon Economy
07:05

Lebanon's central bank bans interactions with Hezbollah's Al-Qard Al-Hassan: Circular

LBCI
Lebanon News
07:15

Lebanese Army arrests 144 Syrians for illegal entry, detains multiple Lebanese suspects in raids

LBCI
News Bulletin Reports
13:10

A 'Druze crisis': Syria-Israel security deal in jeopardy amid Sweida clashes and Israeli strikes

Download now the LBCI mobile app
To see the latest news, the latest daily programs in Lebanon and the world
Google Play
App Store
Download now the LBCI mobile app
We use
cookies
We use cookies to make
your experience on this
website better.
Accept
Learn More