Lebanon banking group rejects latest draft of financial recovery plan

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The Association of Banks in Lebanon said on Saturday it “completely rejects” the government’s latest draft of a financial recovery plan meant to pull the country out of an economic meltdown, Reuters reported. In a statement shared with Reuters, the ABL called the plan “disastrous” and said it would leave banks and depositors shouldering the “major portion” of losses. The government estimates that the financial sector's losses amount to $72 billion. “ABL has assigned its legal advisers to examine and present a range of judicial measures that will allow the preservation and recovery of the rights of the banks and the depositors,” the association said. Lebanon's banks have been a major lender to the government for decades, helping to finance a wasteful and corrupt state that went into financial meltdown in 2019. The collapse has resulted in depositors being shut out of their savings and the local currency losing more than 90% of its value. The banking association rejected an earlier draft of the plan in February, saying it would cause a loss of confidence in the financial sector. Read more.