Lebanon approves bank restructuring law to tackle financial crisis
RIYADH: The Lebanese government has approved a draft law to reform and restructure the country’s banking sector, marking a significant step toward addressing the financial crisis that has persisted since 2019.
Following a four-hour Cabinet session chaired by Prime Minister Nawaf Salam at the Grand Serail, Information Minister Paul Morcos announced that the approved legislation prioritizes protecting depositors, particularly small savers.
The new banking reform law, consisting of 39 clauses, follows recent amendments to Lebanon’s banking secrecy laws — a key demand for transparency and accountability. Morcos emphasized that the reforms align with conditions set by the International Monetary Fund for potential financial assistance.
Morcos expressed optimism, noting that after the removal of banking secrecy, the government had quickly moved forward with reforms in accordance with IMF requirements. He added that a third phase — focused on tackling the fiscal deficit — is anticipated in the near future, reflecting ongoing efforts to stabilize Lebanon’s struggling economy.
IMF and international support
Speaking to local media prior to the Cabinet session, Economy Minister Amer El-Bisat noted that the IMF recognized the complexity of banking reform, requiring extensive political and legal discussions.
Meanwhile, Labor Minister Mohammad Haidar clarified that the law focuses on bank restructuring rather than immediate solutions for depositors’ frozen funds.
The move was welcomed by the UN Special Coordinator for Lebanon, who called it a sign of the government’s commitment to reform. “This positive momentum must continue in parliament and of course, later, in practice,” UNSCOL stated on X.
