A statement was issued by the media office of the Vice Prime Minister in the caretaker government, Saadeh Al-Shami, as follows:
It is regrettable that we are presented with a statement from the Bankers' Association that is, at the very least, unfounded and represents a blatant attempt to evade the issue while falsely claiming to protect depositors.
While we understand the concern of bank shareholders regarding their private wealth as a result of the economic and financial recovery plan, which is a natural and expected matter, the dangerous and irresponsible aspect manifests in a transparent attempt to link the fate of their funds to depositors, which is an effort to circumvent a comprehensive plan that has been evaluated and appreciated by countries and international institutions willing to assist Lebanon.
The government's plan, agreed upon with the International Monetary Fund, came after arduous negotiations that extended over several months and is based on the principle of the hierarchy of rights and claims to absorb losses, a global principle that aligns with the simplest rules and international standards. This means that depositors' funds cannot be touched before exhausting the capital of banks' owners. We have maintained—even briefly—that the "geniuses" behind this statement are well aware of this principle and we also thought—before becoming disillusioned—that they knew that failing to implement this principle would inevitably destroy any hope of reaching an agreement with the International Monetary Fund or obtaining any assistance from other countries. It is essential for everyone to be aware that Lebanon will not be able to conclude any agreement with the IMF or receive any assistance from other countries unless this principle is respected and implemented.
Moreover, it must be highlighted that claims suggesting the plan aims to absolve the state and the Central Bank from any responsibilities are nothing more than unfounded accusations and incorrect. Similar statements—marked by a lack of accuracy and responsibility—to those issued today could extinguish this hope, especially if they are accepted by the concerned parties.
The financial recovery plan safeguards approximately 90% of depositors' funds. However, this does not mean that we ignore the remaining 10%. Writing off part of the deposits held by the Central Bank is primarily aimed at settling the Central Bank's position so that it can fulfill its duties; this does not mean that all these funds have been erased from deposits. In this regard, we are still in the midst of negotiations seeking to protect as many depositors as possible without burdening the state with additional debt, especially since such debts are at the core of the unprecedented crisis we are currently facing, nor can we squander state assets that are owned by citizens, knowing that over half of Lebanese citizens do not have bank accounts.
We have developed numerous initiatives that could significantly impact the recovery of most deposits, but the threat to these initiatives, as well as to depositors, remains in irresponsible statements like those we encountered today.
We have repeatedly stated our aspiration to establish a sound and healthy banking sector that contributes to financing the private sector in order to kickstart the economy and stimulate growth. We have also repeated on several occasions that the banking sector represents one of the pillars of the Lebanese economy and that we strive to improve and restructure this sector for the service of society. Therefore, accepting some losses for the sake of preserving the nation is the least expected of us in these difficult times.
To the depositors, you have suffered significant harm as a result of misguided policies; therefore, you are our top priority. Do not let anyone exploit your legitimate rights and speak on your behalf as if they are genuinely concerned for you. Do not allow them to shackle you with their interests to prevent you from being dragged down with them.
To the banks, you are an important pillar of the economy and have a vital role in the rescue process. These statements, which reflect the views of a small minority of you, do not serve the interests of the banking sector or the country. There are those working day and night to recover as much as possible of the people's lost funds and to gain the trust of international donors so that we can work together to save Lebanon from this unprecedented crisis in modern history. For the sake of those who are suffering immensely and who struggle daily to ensure the basic components of a decent life—food and medicine—let us stop the stubbornness, as this state of denial, if continued, will lead everyone to regret their actions.
