In a recent tweet, the Secretary-General of the National Bloc, Mr. Michel Helou, pointed out the collapse of the banking sector and the devaluation of the national currency, placing the blame on the banking sector for the ongoing crisis in the country. However, an informed banking source has criticized Mr. Helou for overlooking the historical context and the role of political power in managing the financial reality of Lebanon.
The source highlighted the unsustainable borrowing, wasteful spending, random employment, consensual deals, laxity, and waste that have plagued the country’s financial system. They also mentioned the repeated warnings issued by the Association of Banks regarding the consequences of these policies, citing the example of former President Dr. Francois Bassil in 2014. The source emphasized that the accumulation of these practices over time has led to the current disaster.
Furthermore, the source recalled the association’s repeated demands for the approval of the “Capital Control” law, which would help regulate the flow of capital and prevent further economic deterioration. They criticized the political authority for disregarding this principle since the beginning of the crisis. The Association of Banks in Lebanon also categorically rejected the principle of liquidating deposits, which was approved by the same authority. The association’s appeals to the political authority to announce the cessation of payment of the Eurobonds dues were also ignored.
The source pointed out that the governments have failed to adhere to the policy of stopping subsidies, leading to the depletion of reserve funds available in the Central Bank. Despite these challenges, the banking sector remains committed to fulfilling its responsibilities and managing the affairs of citizens to the best of its abilities.
However, the source called for a more responsible approach from those dealing with the country’s reality, urging them to rise above populism in issuing statements and accusations. They emphasized the need to distribute responsibilities among all concerned parties according to their roles, so that the Lebanese people can identify those who have contributed to the crisis.
The ongoing economic crisis in Lebanon has had severe consequences for the banking sector and the value of the national currency. It is crucial for all stakeholders to work together to find sustainable solutions and address the root causes of the crisis.
What are the contributing factors to the collapse of the banking sector and the devaluation of the national currency in Lebanon?
In a recent tweet, Mr. Michel Helou, the Secretary-General of the National Bloc, expressed his concerns about the collapse of the banking sector and the devaluation of the national currency, blaming the banking sector for the ongoing crisis in Lebanon. However, an informed banking source has criticized Mr. Helou, stating that he has overlooked the historical context and the role of political power in managing the country’s financial reality.
The source highlighted several issues that have plagued Lebanon’s financial system, including unsustainable borrowing, wasteful spending, random employment, consensual deals, laxity, and waste. They also mentioned the repeated warnings issued by the Association of Banks regarding the consequences of these policies, citing the example of former President Dr. Francois Bassil in 2014. According to the source, the accumulation of these practices over time has led to the current disaster.
The source also mentioned the association’s repeated demands for the approval of the “Capital Control” law, which would regulate the flow of capital and prevent further economic deterioration. They criticized the political authority for disregarding this principle since the beginning of the crisis. Additionally, the Association of Banks in Lebanon rejected the liquidation of deposits, which was approved by the same authority. The association’s appeals to the political authority to stop paying the Eurobonds dues were also ignored.
Furthermore, the source pointed out that the governments have not followed the policy of stopping subsidies, leading to the depletion of reserve funds available in the Central Bank. Despite these challenges, the banking sector remains committed to fulfilling its responsibilities and managing the affairs of citizens to the best of its abilities.
However, the source called for a more responsible approach from those dealing with the country’s reality, urging them to rise above populism in making statements and accusations. They emphasized the need to distribute responsibilities among all concerned parties according to their roles, so that the Lebanese people can identify those who have contributed to the crisis.
The ongoing economic crisis in Lebanon has had severe consequences for the banking sector and the value of the national currency. It is crucial for all stakeholders to work together to find sustainable solutions and address the root causes of the crisis.
This article perfectly highlights the importance of recognizing responsibility and understanding the consequences that follow, particularly with the collapse of the banking sector and its impact on the national currency. A crucial read for anyone concerned with economic stability and the aftermath of such events.
The collapse of the banking sector poses serious consequences for both the economy and the value of the national currency. It highlights the urgent need for responsibility and accountability within the financial system to prevent such upheavals in the future.