The headquarters of the Association of Banks in Lebanon. (Credit: NNA)
BEIRUT — The Association of Banks in Lebanon on Tuesday condemned its “exclusion” from the drafting of a law to restructure the country’s beleaguered banking sector and asked the cabinet and the head of Banque du Liban Riad Salameh to enable it “to actively participate” in the making of the law.
Here’s what we know:
• In a statement, ABL said that it wants to participate in the making of the bank restructuring law to “secure its basic rights and the rights of its employees and to take care of the rights of its depositors.” ABL said that it has tasked its board of directors with talking to the parties concerned, the most important among whom are Prime Minister Najib Mikati and BDL chief Salameh.
• ABL also said in its statement that it is in favor of an agreement between the Lebanese government and the International Monetary Fund, but asked “what agreement are we talking about? What are its final clauses and what is the plan that will accompany it.” In April, Lebanon signed a preliminary agreement with the IMF which would give Lebanon $3 billion on the condition that it enact key reforms. These conditions have yet to be fulfilled.
• Among the reforms demanded by the IMF is a law that lifts banking secrecy, a version of which was approved with amendments by Parliament on Tuesday. During the Parliament session, the cabinet tried to add the Banking Control Commission of Lebanon and the National Deposits Guarantee Institution to the list of bodies that can oblige banks to lift banking secrecy, but the MPs voted against the measure. Prime Minister-designate Najib Mikati and Deputy Prime Minister Saade Chami explained during the Tuesday session that the measure was needed to implement the banking restructuring resolution. The IMF is yet to give its take on the banking secrecy law approved Tuesday.