Banque du Liban Governor Karim Saïd has raised reservations over a draft law aimed at the gradual recovery of bank deposits frozen since the 2019 financial collapse, as the government pushes to pass the legislation as a key step toward economic recovery.
In a statement issued Tuesday, Saïd said the proposed timeline for cash repayments appears “somewhat ambitious,” stressing the need to ensure it is realistic and capable of guaranteeing regular and sustainable payments.
Technical and Legal Concerns
Saïd noted that the financial stability and deposits repayment bill could be amended if necessary without undermining depositors’ rights, provided the process ultimately ensures full repayment within the proposed timeframe.
He also called for a thorough review of the draft within the Council of Ministers to introduce safeguards and improvements that enhance fairness, credibility, and practical implementation before the bill is sent to parliament.
State’s Role Under Scrutiny
The central bank governor emphasized that the draft law requires clearer provisions regarding the state’s obligations, pointing to one of the most sensitive aspects of Lebanon’s financial crisis: burden-sharing between the state, commercial banks, and the central bank.
The debate comes against the backdrop of a financial crisis that erupted in 2019 after years of unsustainable fiscal policies, mismanagement, and corruption, leading to a sovereign default and the collapse of the Lebanese pound.
The proposed legislation represents the first serious attempt to address a massive financial gap estimated at around $70 billion in 2022, with current estimates suggesting the deficit has since grown.
Ongoing Government Deliberations
Prime Minister Nawaf Salam has urged the cabinet to fast-track approval of the bill. Ministers reviewed the draft over two days earlier this week, with further discussions scheduled for Friday ahead of a decision on its final version.
