While Lebanese banks will start an open strike on Monday, the Lebanese judges’ club has denounced this new campaign conducted by the ABL against the judicial system.
“After political, sectarian and medical reservations, the banking protectorate became a protectorate, responding with a strike to a judicial decision, threatening to stop all financial and banking operations for an entire people“, The magistrates believe, noting that a campaign against them is underway.
“This systematic intention to strike justice to widen the gap between it and public opinion to prevent any responsibility. When will it stop?“, Ask the representatives of the judges who ask for La Défense de la Justice.
We recall that the ABL had called a general strike of at least 3 days, following the arrest on Monday of the president of the Credit Bank Tarek Khalifé on his return to Lebanon through Beirut airport against the background of a complaint filed against him. and following his refusal to appear before a judge.
They also accused the judges of ignoring the legal texts, in particular in the banking and accounting fields, as well as the provisions envisaged and of damaging the freedoms and dignity of people, of tarnishing their reputation and of compromising the relations of local banks with correspondent banks.
Furthermore, they accuse the judiciary of not taking into account the current situation in Lebanon, rejecting accusations of accounting fraud but the impossibility of applying a single exchange rate or international accounting rules.
“If the application of international accounting standards were possible, the losses would have increased rather than decreased,” the statement continues, while the international community calls for a project to unify exchange rates to free the welfare economy in the cedar territory.
Banks had already resorted to this scheme in 2020, when a dozen of their leaders were threatened with legal proceedings by financial attorney Ibrahim Ali who noted that the latter had committed significant crimes. The latter, however, had to back down at the request of the prosecutor, Judge Ghassan Oweidat.
Are Lebanese banks also accused of placing illegal capital controls in November 2019? while they are facing an insolvency situation that arose in May 2019. Experts note that Lebanese banks have therefore failed to manage sovereign risk. However, they do not consider themselves responsible for the situation and believe they have been challenged by the official announcement of a state of default in March 2020. However, observers note that Lebanon has been in a state of default since 2019. that banks prohibit depositors from freely disposing of their funds.
The report published in 2020 by the Foundation for Defense of Democracies and entitled Crisis in Lebanon, Anatomy of a financial Collapse considers all the Lebanese banks studied to be insolvent. They are also threatened with legal proceedings, accused of money laundering and the link of some institutions with Hezbollah in the United States.
• Audi SAL bank
• Bank of Beirut SAL
• Bank of Beirut and the Arab Countries SAL
• Bankmed SAL
• French Banque Lebano-Sal
• BLOM Bank SAL
• Banca Byblos SAL
• Lebanese credit SAL
• Banca Fenicia SAL
• Fransabank SAL
• Banca IBL SAL
• Lebanon and Banca del Golfo SAL
• Bank MEAB SAL
• Société Générale de Banque au Liban SAL
Among the banks mentioned:
In total, the 14 banks considered would require a contribution of 67 billion dollars, far from the maximum sums that Lebanon could obtain in the context of international aid, or 26 billion dollars (15 billion dollars of loans through the IMF). and $ 11 billion through CEDRE on the condition that the economic, monetary and financial reforms necessary to unlock them are implemented).
According to the calculations of a foreign expert, all the factories would require massive injections of funds, ranging up to 11.9 billion dollars for the BLOM alone, followed by 11 billion dollars for the Audi Bank, sums now unobtainable in Lebanon itself. . The risk of bankruptcy or even total closure is therefore present for these establishments with significant losses for the current shareholders.
They may only survive if they blend or even cut the hair on the deposits.