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Lebanon Debate
Salim and Karim face depositors crisis
The article addresses the deteriorating financial situation in Lebanon and the impact of banking policies on depositors. It explains that the Association of Banks is heavily involved in the financial crisis, with prior understandings with both the Governor of Banque Lebanon, Riad Salameh, and the current governor, Kareem Saeed. This raises concerns about manipulation of negotiations and restructuring plans in favor of the banks instead of protecting the rights of depositors. The article notes that disagreements over authority, especially regarding who should oversee the restructuring, further delay solutions. Meanwhile, the value of deposits has significantly declined, shrinking from about $125 billion before the crisis to approximately $79 billion currently, with large depositors facing haircuts of up to 83%. In conclusion, the article suggests that despite its official role, the Association of Banks remains a vested interest in maintaining the current situation, hindering the achievement of a clear and swift solution to recover the funds.
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