The Fund’s expression of its official position welcoming the adoption of the law comes at a critical moment in the process of rebuilding confidence with the international community, as it demonstrates the government’s ability to proceed with the reform policy, and the efforts of the Parliament in the supportive role it played in translating the reforms into clear and implementable legal texts.
The law sets out a comprehensive framework to address the conditions of the banking sector, including defining clear mechanisms for dealing with banks that need restructuring. Enhancing the integrity of the financial sector and consolidating the principles of governance and accountability.
The law was approved after a broad discussion about the powers of the regulatory and monetary authorities and the role of the Supreme Banking Authority. The Fund expressed its satisfaction with the government’s keenness for the final text to be consistent with international reform requirements, and its insistence that defining the powers constitute a firm basis for completing the reform process.
Accordingly, the Ministry of Finance emphasizes that the importance of the law is not limited only to its approval, but rather lies in its being part of a comprehensive reform path aimed at addressing the accumulated imbalances and rebuilding a banking sector capable of financing the economy and protecting financial stability.
The approval represents a positive signal before the resumption of talks with the International Monetary Fund in mid-September, and strengthens Lebanon’s position by showing tangible progress on the legislative and reform path.
