The Finance and Budget parliamentary committee led by MP Ibrahim Kanaan discussed the capital control law on Thursday, and decided to form a committee to find a solution that would help secure liquidity in Lebanon’s banks amid a financial crisis gripping the country.
“A capital control law should have been approved since October 2019 (when the financial crisis emerged) to end preferences in dealing with depositors,” said Kanaan.
He pointed out that “sacrifice is required of everyone. We are awaiting for full clarifications so that the implementation mechanism will be subject to legislation, not discretionary.”
“The International Monetary Fund made it clear that it won’t provide funding for Lebanon without a capital control law in place. Therefore the committee has discussed the IMF’s remarks on the law,” added Kanaan.
“We aim to get out of the crisis. We asked the Central Bank (of Lebanon) and local banks to end this chaos and facilitate the people and students’ affairs abroad,” said the MP.
Kanaan added: “We decided to establish a sub-committee tasked with holding meetings with all parties to reach a solution that would satisfy the people and the state alike to secure the opportunity for people to unwind, and to secure the required liquidity for banks.”
He said although a government has not been formed yet, the Finance and Budget committee “insists on carrying out its legislative work in the absence of a government. We don’t have the luxury of time,” Kanaan concluded.