Conflicting views within BDL's Central Council on government's decision for cap on withdrawals and transfers

Sources in the government seem confident that the Banque Du Liban will respond to the decision issued by the Cabinet on the 18th of this month, which requests it to take necessary measures to impose a cap on withdrawals and transfers available to depositors equally among them, without prioritizing one deposit over another, and to continue granting bank customers the freedom to dispose of fresh funds.

The BDL's Central Council was supposed to discuss this decision on Wednesday. Still, the participation of some members of the Council in a ceremony in honor of General Abbas Ibrahim prevented the holding of an official meeting of the Council. Therefore the discussion of this matter was postponed.

According to the available information, conflicting opinions within the Central Council of the BDL regarding this issue exist.

Some support the view that issuing the circulars would halt the banks' discretionary treatment of depositors, avoid local and international lawsuits, and stop the bleeding of BDL's reserves.

On the other hand, there are opposing opinions to such a decision and any circulars associated with it. 

According to these opinions, the circulars related to withdrawals and transfers have no legal basis, as they have not been legislated in the Parliament.

This could potentially lead to lawsuits filed by depositors not only against the concerned commercial bank but also against BDL, as it is seen as obstructing their rights.

Furthermore, it is not the responsibility of the BDL to cover up for the government and the Parliament's failure to enact a capital control law.

In implementing this government decision, some in the Central Council of the BDL call for caution in taking any action, pending clarification of the legal situation regarding Governor Riad Salameh, especially regarding what will be issued in this regard by the French judiciary on May 16th.