The head of the Association of Banks calls for a government with practical experience to face the crisis … and this is what he said about depositors’ money

The head of the Association of Lebanese Banks, Salim Sfeir, revealed that the Central Bank of Lebanon issued a circular to banks demanding the recovery of funds held for five years, explaining that the ultimate goal is to get a return of between four and five billion dollars.

Sfeir told Reuters that the money would be deposited with a foreign correspondent bank, not with the Central Bank of Lebanon.

Sfeir added that the country’s next government needs ministers with practical experience in finance and other areas to restore confidence in the collapsing economy, after recent attempts to form a new government failed last week.

Sfeir said that “the most important step is to restore confidence, and it will all depend on the new government and the experience its members will have.

He stressed in his speech that “the banks are opposed to any deduction of the deposits” Haircut “, since damaging the money of the depositors is the easiest way to cover losses, but that will generate many social problems”.

Sfeir said banks are still opposed to this, adding: “The easiest formula is to reduce the value, but reducing the value will create a social problem,” noting that the banks’ proposals include the establishment of a fund for acquire government assets worth $ 40 billion to provide guarantees to depositors.

He explained that “the objective of the government fund is to instill confidence as soon as possible in anyone who has doubts about the return of deposits.”

Sfeir added that the assets could remain in the hands of the state and provide liquidity income.