The Association of Banks in Lebanon selected the international firm Ankura on Thursday to be its advisor for potential future negotiations with the Banque du Liban (BDL) regarding the deposits and other investments held there by the country's banks.  Two sources within the banking sector who wish to remain anonymous confirmed that the decision had been made during a meeting attended by representatives of Lebanon's banks, including those no longer party to ABL. The Association of Banks did not respond to requests for comment.  Ankura's offer was one of two received by the ABL, along with that of Alvarez & Marsal, the firm previously hired by the government to carry out the forensic audit of the BDL. Ankura was reportedly approached as early as June, after ABL launched a selection process, while Alvarez & Marsal subsequently took the initiative of reaching out to the organization.  As for the details of the contract, a second source contacted this week mentioned a duration of 18 months and a service fee of $4 million. Both sources, however, specified that banks, whether members of the association or not, will have to voluntarily commit to be represented by the firm.  "Each bank will have to sign in its own name, so the process to finalize the contract with the firm will likely take a few more days," one of the sources said.  According to press reports, the ABL's move is in response to a request from BDL, which, along with the government, is also considering appointing its own advisors.  Lebanon's banks are preparing to fight to recover as much as possible of the $80 billion in receivables, mainly deposits, which they hold at BDL and which BDL cannot repay.  This issue was part of what triggered the 2019 economic crisis that is ongoing to this day, during which banks froze most of their clients' dollar deposits. The banks argue that BDL's inability to return these deposits — for which they were asked to provide funds and paid interest — releases them from most, if not all, responsibility toward their clients.  Opponents of ABL argue that the banks could not have ignored the fragility of the Lebanese financial system when making these investments and are therefore not justified in skirting responsibility.  Ankura Consulting Group is an American advisory firm founded in 2014 and operating in 115 countries, according to its website. It specializes in risk management, corporate restructuring, finance, arbitration, investigation, and strategic consulting. (ICE BEIRUT)

Fonte notizia: L'Orient Today