Bearing the weight of challenges: Lebanon's government and parliament

The US envoy, Amos Hochstein, confirmed that Lebanon cannot benefit from investments in the energy sector without having a sound banking sector and an agreement with the International Monetary Fund (IMF) to restore confidence in the country.

So what are the prospects for reform laws and their approval between the government and parliament?

The Finance and Budget Committee will hold a session on Monday to follow up on proposals for a law to restore financial stability in Lebanon and a law to address the situation of banks.

However, this session will occur amid shifting responsibilities between the government and parliament and amidst a dispute between Deputy Prime Minister Saadeh Al-Shami and the head of the Finance and Budget Committee, Ibrahim Kanaan.

Why this dispute could hinder all discussions and solutions taking place?

Deputy Kanaan accused the government of negligence for not providing official and audited figures on the assets of banks and the state for the past four years, considering this the minimum requirement for enacting the laws and describing meetings with the government as "fish in the sea."

On the other hand, Al-Shami considers Kanaan's statements reminiscent of the past, affirming that the Finance Committee can start studying the basics of the draft laws before introducing certified numbers.

He then added that international auditing of bank accounts, currently being carried out by the government, may take about a year, and we cannot wait.

Both sides stated their positions without reaching an agreement and refused to clarify or explain their differences. Thus, where will these discussions lead, and where will they end?

So far, the situation showed that the session is in danger, especially as it is the first session after the discussions on these proposals began.

Amid attempts to obstruct progress on these proposals, where do the banks stand in all this discussion?

The banks' remarks are not very positive, as banking sources revealed to LBCI that if the parliament convenes, it should start by electing a president for the republic, and then a capable cabinet should be formed that can assume responsibility and start reforms, beginning with reforming the public sector.

The banking sources also question whether, with the current conditions and uncertainty, any investor would inject dollars into the banks.

As a result, the path ahead does not appear to be easy for the reforms required by the American side and the IMF.

Moreover, no one is bearing the cost of delaying reforms except the people. The reserves of the Central Bank of Lebanon are at critical levels, deposits are losing their value, losses are increasing, and the situation is getting even more difficult.