The fate of deposits... Do foreigners have an advantage over the Lebanese?

The fate of deposits... Do foreigners have an advantage over the Lebanese?

| Monday 28 November 2022

Omar Al-Rassi - "Akhbar Al-Yawm" While the fate of Lebanese money is still pending and the capital control bill is under discussion, the judgment rendered by the French Court of Appeal in favor of a Syrian lady living in France in a case with the Lebanese bank Saradar regarding his frozen savings at the bank for the past three years were noteworthy. The Syrian resident has won her case since a French court forced the bank to return "three million" euros and additional US dollars, which were frozen due to the ongoing economic crisis in Lebanon. This decision means that the aforementioned amount must be transferred to the Syrian citizen, knowing that the government of President Hassan Diab returned the project to the House of Representatives in May 2020, and the joint commissions headed by the former vice-president of the House of Representatives, Elie Ferzli, began studying it, and then President Najib Mikati's government picked it up for approval. Once again, he sends it back to the (former) Parliament, which continued to discuss it until the end of his mandate, then to pass to the commissions currently headed by Vice-President Elias Bou Saab... While this law was urgent in October of the year 2019... Faced with the decisions made abroad and the deliberate delay at home, the economic expert, Jassem Ajakka, declared, through the agency "Akhbar Al-Yawm", that there are those who do not want capital controls, saying: The question does not depend on the figures of the Banque du Liban or any other party, because it is possible to find a formula regardless of the complications, if there is the intention. Commenting on the French decision, Ajakka said: This woman has the right to receive her deposits, but there is an amount of money that has gone from the "trail" of Lebanese depositors, considering that leaving the financial situation without any treatment has opened the door to foreign lawsuits against Lebanese banks, and thus foreigners have become They have an advantage over the Lebanese, and this will lead to an additional problem: are the political forces capable of solving it? Ajakka saw that there is a conflict of interest, especially since the trial does not reach a place in Lebanon, but reaches its conclusions abroad, stressing that the issue is not the protection of the banks, but rather the protection of Lebanese money from being withdrawn abroad, through lawsuits filed abroad, while Lebanese depositors are unable to do anything about it. Based on the above, Ajakka emphasized the need to approve capital control and agree on any formula for the equal condition among all depositors. But he went on to say: Away from politics, it is noticed that some political forces fear popular public opinion that rejects capital control, and that is the reason for procrastination. He concluded: If capital control in its final form, which is currently presented before the joint committees, is unfavorable to depositors, then it should be amended to become favorable to them, because the banking sector must be protected in order to protect the deposits and funds.

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