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Government and BDL agree on size of bank's losses

Monday, June 8, 2020

Lebanon’s government and Central Bank agreed on the scale of losses incurred by BDL during a financial meeting in Baabda Monday, paving the way for smoother bail out negotiations with the International Monetary Fund.

Both the Cabinet and BDL had been at loggerheads over the size of the bank’s financial losses. Central Bank Gov. Riad Salameh accused the government with overcalculating the losses in its economic recovery plan, which has been presented to the IMF as the basis of negotiations.

The plan outlines $43.7 billion of "past accumulated losses" within BDL. It also points to a "currency mismatch" whereby BDL owes commercial banks $63 billion more than it has in assets.

Lebanon is banking on receiving a $10 billion bail out from the IMF as part of a package of reforms designed to save the country from financial collapse.

Monday’s meeting was chaired by President Michel Aoun, in the presence of Salameh, Prime Minister Hassan Diab and Finance Minister Ghazi Wazni.

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