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The meeting addressed “the causes of the crises facing Lebanon, the monetary policy adopted and the means to deal with the financial and economic system, and the conditions for it to be addressed through the implementation of fundamental political reforms in parallel.”
The governor stressed, according to the statement, that “despite the failure and stagnation caused by the ‘Corona’ virus and the lack of respect by the State in the payment of Lebanon’s external obligations (Eurobonds), which directly affected the flow of foreign capital and hard currencies, the Central Bank has shown that it has done its job in some way. Professional “.
He added that “Lebanon is not a bankrupt country, but the financial sector suffers the repercussions of the regional crisis from which Lebanon cannot free itself, in addition to targeting it for a period of 3 years with organized smear campaigns that used a tool to put pressure on regional divisions, in addition to general losses as a result of the accumulation of the current account deficit and the budget deficit. The last five years have been reflected in the national exchange rate. “
He pointed out “the difference in the price of the dollar between the price of the platform and the official exchange rate”, and said that “it is impossible to deny the development of the monetary economy”, noting that “the banks still control 90 percent of circulation, which also prevents the country from higher inflation rates. ” Regarding the retention of bank deposits, the Central Bank, from the beginning of the crisis, granted loans to banks in Lebanese dollars or pounds so that they could satisfy liquidity demands “.
He continued: “In order to provide deposits to their clients, banks must strictly implement the Central Bank circulars. It is time for banks and shareholders to assume their responsibilities by reconfiguring their obligations, increasing their capital by 20% and returning the transferred funds in a 15 to 30%, and reconfiguring 3% in their accounts with correspondent banks “. And those that fail will be acquired by the Banque du Liban. The Central Bank has drawn up laws and circulars to be applied precisely and not included in the list. “
He explained that “in the process of establishing a mechanism to guarantee the purchasing power of depositors who have deposits in lira, which has decreased in number to about 18% of total deposits in banks, for which the Central Bank provided and it has yet to do so for the banks which, in turn, have transferred a large amount of deposits in pounds to dollars. “
He said: “Regarding the money supply in the Lebanese market, there are an estimated 10 billion dollars stored inside houses, which requires establishing a new regulatory mechanism to restore confidence in banks, including the preparation of a Lebanese digital currency project, during the year 2021, which will help implement the “CASHLESS SYSTEM”, which allows moving the local and foreign money market.
Regarding the use of gold, the governor stressed that “Lebanon has no natural resources and we must conserve it because it is one of the assets that can be liquidated in foreign markets if we face an inevitable fatal crisis.”
He concluded by calling on the members of the association to “periodically follow up with the Central Bank to implement
Strictly circular benches. “
The Depositors Association proposed a timely study “to mitigate losses of those who deposited and documented the national currency”, and is studying it with the Central Bank “to implement and implement it by issuing circulars that help accelerate the resolution of the crisis” .
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