Lebanese Ministry of Information
The Cabinet on Thursday approved a draft law on lifting bank secrecy, Information Minister Manal Abdul Samad said, describing it as “an important achievement for the government, which will not hesitate to hold accountable any corrupt person.”
Speaking after a Cabinet session at the Baabda Palace, Abdul Samad added that the Cabinet will convene Saturday to discuss the financial situations and mull the issue of whether or not to pay a $1.2 billion Eurobond debt which matures on March 9.
“We have chosen to carry the ball of fire because the country is in great danger and we cannot stand idly by in the face of all that is happening. We will do the impossible to address the accumulations, and unfortunately there are individuals who are doing the impossible to strangle the country,” Prime Minister Hassan Diab said during the session, according to Abdul Samad.
“We will carry on with our national mission of rescuing the country and we won’t be affected by the intimidation they are practicing and the truth won’t change despite falsification,” Diab added.
“The government’s value lies in its solidarity and unity in fighting the battle for Lebanon and I’m confident that each of the ministers is at the level of the challenges,” the PM went on to say.
Economists have warned that paying the March 9 Eurobend debt on time would eat away at Lebanon’s plummeting foreign currency reserves, while bankers say a default would damage the country’s reputation with lenders.
Bank of America Merill Lynch in a November report estimated that around 50 percent of Eurobonds were held by local banks, while the central bank had around 11 percent.
Foreign investors owned the remainder, or around 39 percent, it said.
But these figures may have changed, with local media reporting that local banks have recently sold a chunk of their Eurobonds to foreign lenders.
Naharnet
