Lebanon Faces IMF Conditions: “Banking Sector Reform Law” Will Not Be Amended

Lebanon Today

Amid the government’s efforts to finalize the draft law to address the financial gap, it appears that the banking reform law, which was recently passed, will not proceed smoothly, despite its importance and priority.

An article in “Al-Nahar” mentioned that the observations made by the International Monetary Fund on the banking reform law, despite statements by financial officials, led by Finance Minister Yassine Jaber from Lebanon and Washington, left the impression that the law would not be implemented before introducing the amendments requested by the Fund.

Information indicates that Lebanon has no intention of responding to the Fund’s request, and that the required amendments are not fundamental but minor and do not require any modification. In addition, the law has been issued and has a decision from the Shura Council not to reconsider it, which was confirmed by the head of the Finance and Budget Committee, MP Ibrahim Kanaan, noting that the Fund’s demands are not sacred and that the law has been issued and will not be subject to amendment.

What the Fund is doing regarding the banking reform law was previously repeated with the law amending banking secrecy, and the experience was detrimental to Lebanon, as the amendments requested by the Fund were “downloaded” to the deputies during a parliamentary session via the “WhatsApp” application to the office of the Speaker of Parliament and a number of deputies, and were indeed adopted. However, the difference today is that the amendments were requested after the issuance of the banking reform law, and it would be embarrassing for Parliament to comply with the Fund in a way that affects its sovereignty in its legislative work and does not change anything in the reality of the law except to delay the process of approving the gap law and recovering deposits!