Finance Minister Yassine Jaber announced that the banking sector restructuring law will be approved “before the end of the current month,” following a meeting on Wednesday with Central Bank Governor Karim Souaid, where the two discussed several key financial matters.  Cabinet approved the draft banking sector restructuring law on April 12 – a key prerequisite for securing a deal with the International Monetary Fund (IMF) – and subsequently referred it to Parliament. The Finance and Budget Committee, chaired by MP Ibrahim Kanaan, began examining the legislation on April 30. However, progress has been stalled amid a gridlock over the composition of the future Higher Banking Authority (HBA), which would be responsible for overseeing the restructuring process. “We agreed to accelerate its approval after delays caused by the head of the Finance and Budget Committee traveling abroad and the convening of Parliament’s general assembly,” Jaber said of Wednesday’s discussions with Souaid. “Nevertheless, there was consensus to align positions and move quickly toward passing the law.”  The two officials also discussed the outcome of Souaid’s recent visits to Washington and Paris, where he spent more than a week meeting with IMF representatives and U.S. administration officials.  Jaber revealed that the appointment of Banque du Liban (BDL) deputy governors, as well as the chair and members of the Banking Control Commission (BCC), is “imminent.” Once these positions are filled, the focus will shift to preparing the financial gap resolution law.  To move forward with that law, Jaber said, “the central bank needs tools,” the first of which is the lifting of banking secrecy, officially enacted on April 24. However, he emphasized that it is the BCC that holds responsibility for implementing the next steps, as it's their job to deploy “a team to enter banks, study their conditions, and determine how they should be restructured.”  The BCC, he added, is the “only body authorized to access bank operations.”  This institution is at the center of a current standoff between the government and Souhaid, who views the granting of voting rights to the head of the BCC within the HBA as a threat to BDL independence.  Jaber also addressed Circular No. 169, issued Tuesday by BDL, which instructed Lebanese banks to “refrain from disbursing any amounts from foreign currency accounts established before Nov. 17, 2019, beyond the ceilings set by BDL regulations and only with prior written approval.” The measure effectively halts payouts resulting from court rulings abroad. “The goal is to ensure fairness in the matter of payment to depositors,” Jaber said. “It is not acceptable for one depositor to receive all of their money with interest, while another receives only $300 or $400 a month.”  The circular drew sharp criticism from experts, who questioned its legality. (ICE BEIRUT)

Fonte notizia: L'Orient Today