ABL says it is optimistic about implementing 'real solutions by 2026'

BEIRUT — In the latest monthly report, Fady Khalaf, secretary general of the Association of Banks in Lebanon (ABL), announced the appointment of international firm Ankura to advise on negotiations with the Banque du Liban (BDL) or Central Bank about Lebanese banks' deposits and investments.

National efforts are leading “at an accelerated pace” toward “a radical solution to the crisis unprecedented in Lebanese financial history,” Khalaf said, referencing the two recently adopted laws lifting banking secrecy and resolving the banking sector.

He added that the law on restoring financial balance and the restitution of deposits “could be ready before the end of the year” and “could, for the first time since the crisis began, open the way to real solutions by 2026.”

Namely: a comprehensive plan to apportion losses that respects fairness toward depositors, the restoration of order in the sector, and accounting for the rules of financial justice and international requirements.

“If things progress as planned, 2026 will see the gradual implementation of solutions within a clear roadmap, allowing for a gradual return of confidence in the sector and the fair, organized, and gradual restitution of depositors' rights,” Khalaf continued.

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After emphasizing his shared perspective with BDL governor Karim Souhaid on this matter, he revisited the mission given to the international firm Ankura, which will be responsible “for accompanying these reforms and negotiating with the financial advisors of the state and Banque du Liban.”

According to our information, the contract with Ankura is for 18 months and is worth $4 million. According to Khalaf, Ankura will notably be tasked with: preparing studies and financial proposals based on the current state of the banks, conducting a realistic analysis of loss-sharing scenarios, developing restructuring proposals for the banking sector and ultimately, ensuring complete coordination with all concerned stakeholders.

“The new momentum that is beginning to emerge aligns with ABL’s vision, which considers current efforts a true starting point for getting out of the crisis, not just empty promises deferred,” the text concluded.