A French statement … Those who deposited in the banks of Lebanon lose their money ?!

A senior French official said it could be difficult for banks in Lebanon to adhere to the principle that depositors should not lose any of their deposits, according to minutes of a meeting where France outlined steps to help the crippled banking sector.

The remarks came during talks in Paris on September 10 between senior French officials and a delegation from the Association of Banks in Lebanon, after France led international efforts to pressure politicians who cling to their positions in Lebanon to implement the reforms needed to attract aid and alleviate a crisis that paralyzed the banking sector and prevented depositors from getting the majority of their money.
“While it is a matter of principle for the Lebanese Association of Banks that depositors should not suffer losses, it may be difficult to defend this to the end. But it is a matter of negotiation,” said Pierre Duquin, envoy of French President Emmanuel Macron to coordinate international support to Lebanon.
The Lebanese Central Bank and the commercial bank bankers are trying to avoid a “reduction in the value of deposits” or an official reduction of the balances held in deposit accounts. But depositors who have dollar accounts in Lebanon are already losing money because they cannot withdraw the money or because they can only do so by converting it into Lebanese pounds at rates below market rates.
The French Foreign Ministry has not yet issued a comment.
A senior Lebanese banker involved in the talks told Reuters that during his meetings with French officials addressing the president’s initiative, they felt they supported the prosperity of the banking sector.
In turn, a French diplomatic source said the talks were part of efforts to implement the economic roadmap for Lebanon.
In addition to statements made by Duquesne on deposits, he also addressed other required measures, including the swift implementation of capital controls and the merger of banks in a country that has 64 banks controlled by 32 groups.

On the restructuring of Lebanon’s external and internal debts, Duquesne said that a series of measures must be taken. He added that “there is no magic formula.”
The minutes of the meeting showed that representatives of the Lebanese Association of Banks, including the Association’s president, Salim Sfeir, said that the banks were ready to join “collective efforts” to resolve the crisis and identified proposals that included support for the establishment of a fund to mobilize state assets.