How did the Minister of Economy comment on the item “bank conditions”?

Yesterday, Tuesday, the Council of Ministers held a session in which it discussed 21 items, to which three items were added, including the draft law related to addressing the conditions of banks in Lebanon and reorganizing them.

Commenting on the addition of this clause, Lebanese Minister of Economy Amin Salam told Al-Nahar newspaper, saying: “With regard to the issue of the law presented today in the cabinet session, we objected to it on February 21, 2024, that is, roughly about a year ago.”

Salam continued: “Most of the objections were on the issue of recovering depositors’ money and not on the restructuring mechanism,” pointing out that “adding this item today to the agenda of the Council of Ministers session or not adding it is an issue that belongs to the Prime Minister, and it is the one who decided to include it, not us.”

He stressed the need to pass a law to restructure banks and recover depositors’ money, because this issue contributes greatly to paralyzing the economic movement in the country and paralyzing the path of reform, and it is one of the most important laws required today to begin the path of financial and banking recovery.

He considered that the Bank of Lebanon must also play a major and essential role alongside the government, because it is the sponsor or the authorized entity responsible for banks or restructuring banks and everything related to the next stage.

Salam asked: “Is the Central Bank of Lebanon fully informed of the details of the law?” Is he okay with it? Pointing out that answers to these questions are necessary for the shared responsibility between the government, the central bank and private banks.

Salam talked about three versions of the law, and said: “We categorically rejected what was stated in the last version of it, specifically what is related to the mechanism for recovering depositors’ money. We submitted a book and we are committed to its details until today.”

He added: “In our role, as the Ministry of Economy, the issue of recovering depositors’ money is at the core of our concerns, as it is a ministry responsible for the general policy of the country’s economy in the next stage, and the banking sector is the backbone of the country, and the most important of all is restoring confidence in this sector, firstly by the Lebanese citizen and secondly.” By the foreign investor.

He stressed that the role and goal of the Ministry of Economy is to strengthen confidence and work with the government, the Bank of Lebanon and the private sector on solutions that restore this confidence, protect depositors and protect banks as well, because not restoring confidence is a major problem whose consequences will be dire in the near and distant stages.

Regarding the movement of the Depositors’ Cry Association, he said: “They have the right to object and we are with them, and we will be their voice during the session to defend their rights.”