What did Sfeir say about depositors’ money?

The head of the Banking Association, Salim Sfeir, stressed the need to “form a new government that includes those with practical experience who restore confidence in Lebanon and do not cancel deposits under the possibility of establishing a sovereign fund in which assets continue being property of the State “.

In an interview with “Reuters”, “Sfeir called for the formation of a new government that includes people with practical experience, as he indicated that restoring confidence is the most important factor in getting out of the crisis, as well as forming a new government based on in experiences “.

Regarding the recent circular from the Banque du Liban, Sfeir said that “it aims to recover between 4 and 5 billion dollars to face the great shortage of bank liquidity.”

Sfeir highlighted in his speech: “Banks are opposed to any deduction of deposits, ‘Haircut’, since damaging depositors’ money is the easiest way to cover losses, but that will create a lot of social problems.”

On the other hand, the Association of Banks proposed the creation of a sovereign fund in which assets remain the property of the state, valued at $ 40 billion, to guarantee deposits first and restore confidence quickly, in order to reduce the existing skepticism about the possibility of paying the deposits.

Sfeir explained in this context that “the assets of the state will remain the property of the state, but the income of the fund will create the necessary liquidity.”