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Lebanon Bank Association chief stresses need for realistic recovery plan to protect depositors and revive sector
Lebanon Economy
28-04-2025 | 03:27
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Lebanon Bank Association chief stresses need for realistic recovery plan to protect depositors and revive sector
The Secretary-General of the Association of Banks in Lebanon, Fadi Khalaf, stressed that approving the draft law for banking sector restructuring and preparing it for discussion in Parliament requires a special legal approach that considers the deep dysfunction in public administration and public finances.
In the opening editorial of the association’s monthly report, Khalaf emphasized that banks have complied with the directives of the Central Bank and should not bear the consequences of sovereign decisions, calling for flexible legal measures for compliant banks.
He stated that addressing the crisis requires a comprehensive national plan to protect depositors’ rights, settle small accounts, create a mechanism for gradual compensation, and recapitalize the banking sector while linking financial and monetary reform to public sector reform.
Khalaf pointed out that the International Monetary Fund program provides a framework for stimulating recovery and restoring confidence in the economy, but stressed that it requires innovative solutions that account for the unique nature of Lebanon’s crisis.
He concluded by underscoring the importance of partnership between banks, the state, and the IMF to establish a fair and sustainable economic model.
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