Three banks agree with the IMF to write off the deposits

"Lebanon Debate"

Independent banking sources raised many questions following the last visits of the IMF delegation to Beirut, especially in terms of the dimensions and the feasibility of the meeting it held with some of the banks, excluding the others. Question marks also surrounded the delegation’s initiative to visit the headquarters of a bank in a manner that contradicts the approved principles and without coordination with the Association of Banks.

In the absence of other banks, the delegation individually met with the directors of Banque Libano-Française (BLF), Bankmed, and BLOM Bank. They talked about the deposit file and the development of the banking crisis following the collapse in 2019. Because the agenda was not discussed with the Assembly during its permanent and open meetings, the banking sources considered these discussions to have been conducted in an unprofessional manner.

The banking sources unveiled the most dangerous thing that took place in this meeting and described it as a “scandal”. It turns out that these banks agreed on the IMF’s plan to write off the deposits of the Lebanese.

In this context, the banking sources affirmed that the shocking move of the abovementioned banks is a result of their fear of the sanctions they could face because of abuses they committed before and after the banking collapse.

For example, the sources reported that BLOM Bank handed out their deposit data to Judge Ghada Aoun, especially since it transferred money to a politician (head of a Christian political party) and his wife. Therefore, the bank fears that the files of some of its non-Lebanese depositors, in countries subject to US sanctions, will be opened.

In addition, Bankmed has become famous after the loss of its capital and the multiple prosecutions issued against it in Lebanon and foreign countries. Its Executive General Manager, Michel Accad, played a suspicious role in the deposit file, as a result of his blatant bias towards the demand of the IMF to write off deposits.

The banking community added that, in fear of being prosecuted and because of its inability to face any lawsuit, BLF seeks to avoid opening the files of some of their "suspicious" depositors.

Based on all of the above, the most prominent question asked by independent banking sources is related to the role played by the Executive General Manager of "Bankmed" alongside the advocacy group "Kulluna Irada” in sabotaging the last meeting of the committee, where representatives of the mentioned banks and the delegation of the IMF attended. The representatives of "Bank of Beirut" who were participating in the meeting got the hold of it and objected more than once to the ongoing discussion and deliberations, especially since this committee is somewhat "dissolved" and therefore no longer represents banks or the association.

Hence, independent banking sources today refuse to talk about the unity of position in the Association of Banks. There is no unity as long as some of these banks are trying to play the role of spokesman for all banks that refuse to write off deposits as stipulated in the IMF plan. Today, these banks are still working to differentiate their decisions from other banks and playing suspicious roles in the conspiracy that killed the banking sector.

The sources warn of the repercussions of the behavior of these banks on the deposits of the Lebanese, while other banks are standing against any attempt to write them off, whether by the IMF or by any internal parties.