Lebanese Finance Minister Yassine Jaber. (Credit: National News Agency)
Lebanese Finance Minister Yassine Jaber stated on Tuesday that "the reform of the banking sector is the cornerstone for restoring the international community's confidence in Lebanon," during a meeting with a French delegation led by Jacques de Lajugie, special envoy of French President Emmanuel Macron for economic issues, reported the National News Agency.
The minister indicated that "banking sector reform is the cornerstone for restoring the confidence of the international community in Lebanon, which seeks to assist in support of the reconstruction process and infrastructure development, as well as to attract foreign investors for investment projects, while encouraging local investors to energize the productive sector and revive economic activity."
During another meeting on the same day, Jaber and Jean-Christophe Carret, regional director of the World Bank, discussed the preparatory stages of programs related to projects that the organization plans to implement, the statement said. These projects will then be transformed into draft laws to be submitted to Parliament, according to the same source. The minister emphasized that "the Lebanese government is fully committed to accelerating the preparation of reformist bills, out of personal conviction, even before it becomes a requirement of the international bodies supporting Lebanon or potential donors," adding that "all eyes are on the adoption of the banking resolution bill, which will be a guarantee allowing Lebanon to attract aid, secure it and ensure sustainable economic and monetary stability."
Finance and Budget Subcommittee meeting
The Finance and Budget Subcommittee, chaired by MP Ibrahim Kanaan, held a session during the day dedicated to the banking resolution bill. This meeting brought together, among others, Jaber, the governor of the Bank of Lebanon, Karim Souhaid, as well as MPs Ghassan Hasbani, Ali Hassan Khalil, Fouad Makhzoumi, Alain Aoun, Raji Saad and Selim Aoun.
At the end of the session, Kanaan highlighted that it had been "productive" regarding "continuing discussions on the framework law related to banking sector reform." "International models related to the role and objectives of the central bank were presented, which do not contradict the role of supervisory authorities and governmental entities," he specified. "A shared agreement was reached on the main lines and fundamental principles to be adopted to successfully carry out this reform, notably between the Finance Ministry and the Bank of Lebanon," added the parliamentarian.
He also indicated that the subcommittee "addressed the articles of the law, approved several terms appearing in article 1, clarified and modified others, notably regarding the definition of deposits, private funds, financial sector institutions, as well as regulatory authorities." Kanaan insisted on reminding that "the objective of the parliamentary subcommittee is to accelerate the preparation of the law, and not its adoption": "The project, accompanied by the subcommittee's report, will then be submitted for discussion in the main committee, then to the General Assembly. This means that an opportunity will be given to everyone to debate the law transparently before its adoption."
The participants recalled the « recommendation of the Finance and Budget Commission, which calls on the government to expedite the finalization and submission of the restitution of deposits bill, so that it can be studied and adopted in parallel with the banking sector reform law, due to the structural link between the two,' the statement indicates.
