A man holding Lebanese liras. (Credit: Joseph Eid/AFP)
After months of anticipation, the draft law on restoring financial order and returning bank deposits is set to be reviewed at Monday’s Cabinet meeting.Prime Minister Nawaf Salam has described the text as “imperfect but fair.” The draft reflects a compromise between the government and Banque du Liban Governor Karim Souhaid, who was present when the proposal was unveiled last Friday. While it prioritizes protection for small depositors, most of the financial burden would fall on the state and large depositors rather than on banks, a design that has not prevented the Association of Lebanese Banks from sharply criticizing the draft even before its publication.Six years after the financial collapse, the draft raises a central question: who ultimately pays for the crisis? And beyond its accounting mechanisms, does the law establish...
After months of anticipation, the draft law on restoring financial order and returning bank deposits is set to be reviewed at Monday’s Cabinet meeting.Prime Minister Nawaf Salam has described the text as “imperfect but fair.” The draft reflects a compromise between the government and Banque du Liban Governor Karim Souhaid, who was present when the proposal was unveiled last Friday. While it prioritizes protection for small depositors, most of the financial burden would fall on the state and large depositors rather than on banks, a design that has not prevented the Association of Lebanese Banks from sharply criticizing the draft even before its publication.Six years after the financial collapse, the draft raises a central question: who ultimately pays for the crisis? And beyond its accounting mechanisms, does the law establish...
