Banks Association lawyer Akram Azoury: Banking gap law has merits but faces major flaws

Lawyer Akram Azoury, representing the Association of Banks in Lebanon, said the proposed financial gap law has both shortcomings and positive aspects, describing it as a draft "open to discussion and viable," but warning that it is currently not applicable in its current form.

Speaking to LBCI's "Nharkom Said" TV show, Azoury said the law's main merit is simply that it exists. He argued that had such legislation been prepared five or even three years ago, it would have stood a much better chance of implementation than it does today.

Azoury stressed that the draft law can still be debated and amended, noting that it includes what he described as a modest but essential reference to Article 113 of the Monetary and Credit Law, which stipulates the state's responsibility for losses incurred by Banque du Liban (BDL). He said this marked the first time the state had moved away from what he called a long-standing state of denial regarding its role in the financial collapse.

At the same time, Azoury pointed to what he described as serious flaws in the draft that would make it unworkable. As currently written, he said, the law would leave no remaining Lebanese bank capable of survival.

He warned that the pressure the draft places on commercial banks is, in his view, beyond what any bank could withstand. Azoury expressed hope that the Association of Banks' perspective would be heard, either at the Cabinet level during ongoing discussions or later within the legislative authority.