Lebanese government slams bank association's rejection of financial recovery plan

The Lebanese banking association's rejection of a financial recovery roadmap passed last week by Lebanon's cabinet is "dangerous and irresponsible", a senior government official said on Tuesday.

According to a document seen by Reuters, the plan would cancel "a large part" of the central bank's foreign currency obligations to commercial banks and dissolve non-viable lenders by November.

The Association of Banks in Lebanon said on Tuesday that the plan places the full losses of the country's economic meltdown on depositors.

Disclosed: Lebanon Central Bank governor's son moved millions abroad while Lebanese watched blocked savings dwindle https://t.co/YyT1tIbjrh

— The New Arab (@The_NewArab) May 15, 2022

"The attempt to link the fate of their money with the depositors is dangerous and irresponsible," the office of the prime minister said on Twitter, citing Saade Chami, the deputy prime minister in the caretaker cabinet of Najib Mikati.

The plan was approved by cabinet in its final session, hours before losing decision-making powers following the election of a new parliament on May 15.

(Reuters)