Banks

”The State and the Banque du Liban are bankrupt”, according to Saadé Chami

Lebanese Deputy Prime Minister Saadé Chami said that “the State and the Banque du Liban (BDL) are bankrupt”, as the country is going through the worst economic crisis in its modern history and the government is struggling to legislate on capital control and to guarantee the assets of depositors, illegally blocked in banks since 2019.

“The state is bankrupt, as is the Banque du Liban, and there are losses,” Chami said in a television interview on Sunday on al-Jadeed channel. “The distribution of losses will be attributed to the actors concerned, namely the State, the BDL, the banks and the citizens,” he continued.

Saadé Chami plays a key role in trying to get Lebanon out of the economic crisis, having been responsible for leading the delegation responsible for negotiating with the International Monetary Fund (IMF) the release of a “rescue fund”. A pure technocrat, he spent most of his career at the IMF, where he held key positions for nearly 20 years and headed the Technical Support Center in the Middle East.

Read also

Capital Controls: New Bill Goes Down in Flames

Returning to the disputed capital control bill, Mr. Chami argued that “MPs have the right to oppose the bill, given the times in which it was submitted (…) but we wanted finish it quickly.” Despite the differences between some ministers, “it is not necessary that all agree to submit the bill to Parliament”, he said.

Last Monday, MPs Ibrahim Kanaan, Chairman of the Parliamentary Finance and Budget Committee, and Georges Adwan, Chairman of the Administration and Justice Committee, deplored the fact that the MPs did not benefit from 48 hours to review the project. However, the Deputy Prime Minister announced last Wednesday, after a meeting of the Council of Ministers, that the latter had endorsed the controversial capital control bill. Although slightly modified, the project was not approved unanimously, knowing the opposition of the ministers of the two Shiite formations, Hezbollah and Amal.

In 2020, Lebanon defaulted on the portion of debt in foreign currency which weighs more than 37% of the total nominal value of the debt (the real value of the latter, which takes into account the depreciation of the pound on the market parallel and the current price of Lebanese Eurobonds is much lower). A first in the history of the country which, until then, had a reputation as a good payer, even if it was on the third step of the podium in terms of debt/GDP ratio behind Japan and Greece two years ago. years.

Lebanese Deputy Prime Minister Saadé Chami said “the state and the Banque du Liban (BDL) are bankrupt”, as the country is going through the worst economic crisis in its modern history and the government is struggling to legislate on capital control and to guarantee the assets of depositors, illegally blocked in banks since 2019.”The state is bankrupt, everything…

About the author

on100dayloans

Leave a Comment