Prime Minister Nawaf Salam unveils controversial banking law draft, addressing the 2019 economic crisis's impact on banks and depositors. The draft, a key demand from the international community for financial aid, proposes a loss-sharing mechanism between the state, central bank, commercial banks, and depositors. However, it has sparked anger among banks and some depositors, who argue that the state should bear full responsibility. The law aims to recapitalize failing banks and convert government debt to the Central Bank into bonds. Despite the controversy, Salam emphasizes the bill's role in stabilizing the banking sector and preventing further economic collapse. The draft's success hinges on overcoming political obstacles, as many lawmakers have ties to banks, potentially blocking its passage. The government estimates the financial crisis's losses at $70 billion, a figure that may have grown over the unaddressed years. This draft law is a crucial step towards addressing Lebanon's economic crisis, but its implementation remains uncertain.
