Wazni: Cabinet Likely to Approve Capital Control Law

Finance Minister Ghazi Wazni said the cabinet will likely approve the capital control law during its next meeting, with emphasis on protecting the rights of depositors, al-Joumhouria daily reported on Wednesday.

“There is a high possibility that the cabinet is to approve on Thursday the capital control law,” he said, noting that efforts “seek to reach a balanced version of the law that protects the rights of depositors mainly small depositors.”

Banks in Lebanon are tightening banking controls, limiting the amounts of dollars depositors are allowed to withdraw every month, despite growing public anger.

Faced with a dollar liquidity crunch, banks have imposed informal controls on dollar withdrawals and transfers abroad since September amid widespread anti-government protests and Lebanon’s worst economic crisis in decades.

On an economic plan to solve Lebanon’s ailing economy, Wazni noted that efforts are ongoing to complete a “rescue-reform plan within a one month period,” he told the daily.

Wazni criticized the banks’ decision to suspend work until March 29 over the coronavirus threat, saying they should have adapted their work to meet the needs of customers.

“Banks should have adapted their work according to the general mobilization state announced by the government to continue to meet the needs of customers according to a specific rotation program among employees, taking into consideration protection measures against coronavirus,” he added.

Naharnet