A Tripoli branch of BLOM Bank on Oct. 7, 2022. (Credit: Nicholas Frakes/L'Orient Today)
After the very positive signals sent to the IMF and Lebanon’s partners with last week’s vote on a new revision of the banking secrecy law and the submission to Parliament of the framework draft law on banking resolution, storm clouds started to gather over this matter and the related issue of loss distribution.The parliamentary Finance and Budget Committee met on Tuesday to review the banking resolution draft law. The session took place in a climate marked by political and institutional tensions. It brought to light the extent of disagreements among parliamentary blocs regarding the reasons behind the crisis, who is responsible for it, and how to align this draft with the still-pending law on loss distribution — officially referred to as the “Law on addressing the financial gap.”'Systematic crisis' and political messagesA central...
After the very positive signals sent to the IMF and Lebanon’s partners with last week’s vote on a new revision of the banking secrecy law and the submission to Parliament of the framework draft law on banking resolution, storm clouds started to gather over this matter and the related issue of loss distribution.The parliamentary Finance and Budget Committee met on Tuesday to review the banking resolution draft law. The session took place in a climate marked by political and institutional tensions. It brought to light the extent of disagreements among parliamentary blocs regarding the reasons behind the crisis, who is responsible for it, and how to align this draft with the still-pending law on loss distribution — officially referred to as the “Law on addressing the financial gap.”'Systematic crisis' and political...