Paris:The Central Bank of Lebanon (BDL) conducted closed-door meetings in Paris on October 27 and 28, engaging with representatives from several Lebanese banks. The discussions were centered around bank recapitalisation, addressing financial sector losses, and exploring the potential recovery of depositors' funds.
According to National news agency - Lebanon, the meetings included banks selected by the Association of Banks in Lebanon (ABL) and the central bank's financial advisers, Rothschild and Cie. The focus was on key provisions that might influence the implementation of a future financial stability and deposit recovery law.
The agenda covered the capital requirements for banks to resume normal operations and absorb accumulated losses, as well as the availability of current and future liquidity across the banking sector. Participants evaluated assets held by the central bank and commercial banks, which could be converted into cash to assess the financial resources available for repaying depositors.
The Central Bank of Lebanon refuted media claims of other parties' involvement, emphasizing that discussions were confined to issues directly concerning the central bank and commercial banks. The talks are part of an ongoing assessment to determine the realistic amount of depositors' money that can be returned and the timeframe for doing so, emphasizing the necessity for credible commitments.
The central bank reiterated that commercial banks are full partners with the state and the central bank in restoring deposits, highlighting their role in economic recovery. The bank argued that sustainable growth necessitates a functioning credit system to finance businesses, investment, and production.
In addition to these meetings, the central bank governor participated in high-level discussions with the Governor of the Banque de France and US Treasury officials on combating money laundering and terrorist financing. The governor's visit also included consultations with law firms representing the central bank in legal proceedings related to allegations of embezzlement, fraud, and illicit enrichment involving former officials and associates.
