Lebanese depositors may not get all of their money

A senior French official stated that Lebanese banks may face difficulty adhering to the principle that depositors should not lose any of their deposits.

According to Reuters, the statements came during talks held in Paris on the tenth of September between senior French officials and a delegation from the Association of Banks in Lebanon to discuss steps identified by France to help the affected banking sector. Paralyzed. Reuters saw a copy of the confidential meeting minutes.

France has led international efforts to push politicians clinging to their positions in Lebanon to implement reforms necessary to attract aid and alleviate a crisis that paralyzed the banking sector and prevented depositors from obtaining most of their money.

Pierre Duquin, envoy of French President Emmanuel Macron to coordinate international support for Lebanon, according to the report, while it is a matter of principle for the Association of Banks in Lebanon that depositors should not suffer any losses It may be difficult to defend this to the end. But it is a matter of negotiation.

The Central Bank of Lebanon and bankers in commercial banks are endeavoring to prevent a reduction in the value of deposits, or an official reduction of the balances held in deposit accounts.

But depositors with dollar accounts in Lebanon say that they have already lost money because they cannot withdraw the money or because they can do so only by converting it into Lebanese pounds at less than rates Market.

The value of the Lebanese pound, which was pegged to the dollar for more than 20 years, collapsed during the financial crisis.

The French Ministry of Foreign Affairs has not yet issued a comment.

A senior Lebanese banker who participated in the talks told Reuters that during their meetings with French officials that dealt with the president's initiative, they felt that they were supporting the prosperity of the banking sector.

A French diplomatic source said that the talks were part of efforts aimed at implementing the economic road map for Lebanon.

In addition to the statements made by Duquin regarding deposits, he also addressed other required measures, including the rapid application of capital restrictions and the merging of banks in a country that has 64 banks it controls 32 Group.

On the restructuring of Mount Lebanon's external and internal debt, Duquesne said that a set of measures should be taken. He added that there is no magic bullet.