Lebanon’s Banking Association is not pleased with the government stats presented to IMF

Parliament house in Beirut, Lebanon. Editorial.

The Lebanese government plan, which will build the basis of the dialogue on monetary aid with the International Monetary Fund (IMF), expects to direct Lebanon out of an economic crisis observed as the greatest danger to stability since the 1975-90 civil war. On Tuesday, the Association of Banks in Lebanon (ABL) expressed that the legislative details introduced to the International Monetary Fund (IMF) in discussions for a reform program don’t compose a rightful reason for saving the economy.

There are disparities between the legislature and the central bank on assessed losses in the financial sector that have confused the IMF conversations. It started a month ago as the intensely indebted nation hopes to come out of a profound financial crisis.

The ABL executive expressed in May that the Lebanese banks were operating on the Beirut’s rescue plan that would safeguard a portion of their capital instead of discounting everything as illustrated in the government plan.

Lebanon’s Association of Banks dismissed the plan, stating it would “further wreck confidence” of the intensely economically suffering nation. The Banking Association has offered recommendations of its own, which it says the legislature overlooked.

The plan requires the recapitalization of the financial sector, task bankers state it would prove troublesome given Lebanon’s economic crisis. Banks that can’t raise new capital could be constrained bankrupt, furthermore harming the economy.

Lebanon’s Associations of Banks statement said, that they are astonished by the administration’s emphasis on eliminating the banking sector from having financial discussions that could prompt certain and significant ramifications for Lebanon’s financial future.

“The figures introduced by the administration to the International Monetary Fund… does not comprise, from our point of view, a legitimate reason for economic rescue,” it included.

The ABL asked the government to open a more extensive discussion on the plan as concerns that the reform program could cause stress to the Lebanese deposits and taxes.

ABL’s Sfeir expressed that The global economy is in such a rundown that new investors to contribute to the Lebanese financial plan today or future seems challenging.

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