Lebanon economy minister says cabinet likely to approve fiscal gap law soon - Insha'Allah
As-salamu alaykum - a quick update on Lebanon. The economy minister, Amer Bizat, said the cabinet is expected to approve and then send to parliament a long-awaited law to help restructure the country’s debt, and he expects this to happen soon, Insha'Allah.
He stressed they’re talking with the IMF every day and that the focus is on making the law right rather than rushing it. The law - often called the “fiscal gap” measure - is meant to outline how financial losses will be shared between the state, the central bank, commercial banks and depositors after the crisis that started in late 2019.
Bizat said the draft follows three main ideas: depositors should get their money back over time without a haircut, the banking sector must be restored to health, and smaller depositors should be repaid faster than larger ones. He didn’t go into numbers, but repeated that getting the details right is more important than speed.
On relations with bondholders, he said things are “good, cordial and positive.” He wouldn’t give specifics about meetings on the sidelines of the IMF/World Bank gatherings in Washington.
He also noted recent regional events might lead to big positive changes for Lebanon if stability and security return - and that could help the country a lot, though the region is still in conflict now.
Finally, the government is expecting many investors to come to Beirut in November for a conference called Beirut One, which Bizat hopes will restart private investor interest. He said people are realistic about the long road ahead, but many are starting to imagine the day after - and that’s a hopeful sign. May Allah make it easy for Lebanon.
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