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Cabinet approves modified capital control draft law

Wednesday, March 30, 2022

Cabinet approved a modified draft version of a long-awaited capital control law. The law aims to legalize and standardize the ad-hoc banking restrictions that were illegally imposed on depositors after Lebanon’s financial crisis was triggered in 2019. Modifications to the draft included a change in the composition of the capital control committee, which is in charge of the law’s implementation. Prime Minister Najib Mikati and Economy Minister Amin Salam were replaced with two economic experts chosen by Mikati, in addition to a judge. Finance Minister Youssef Khalil will chair the committee while central bank Governor Riad Salameh, who was recently charged with illicit enrichment, also stays put. Deputy Premier Saade Chami said the committee will now serve for a maximum of two instead of three years. The draft capital control law will now be sent to Parliament, where it will likely be discussed at the committee level before being voted on

Acting Bodies: 
Lebanese Government
Economic measures (State budget, rent law, wages...)
Civil Society Response: 
Not applicable