The proposed Lebanese capital control law will be debated by parliamentary committees on Monday, and if the text is agreed upon, it will be put to vote on Tuesday, according to two parliamentarians. The decision is a new attempt to pass the long-delayed bill amid a deadlock between banks and some judges.
Meetings with the IMF this week, according to Deputy Prime Minister Saade Chami’s office, were largely focused on gaining the Fund’s perspective and comments on the draught capital control bill.
On Monday, the proposal was referred to parliamentary committees for consideration, and it was on the agenda for Tuesday’s parliamentary session. The IMF’s comments had been incorporated into the draft.
Since 2019, when Lebanon slid into a financial crisis that paralysed the banking sector and froze depositors out of US dollar accounts, ruling parties have failed to adopt a capital control law.
The IMF has recommended formal capital controls as a policy suggestion from which Lebanon wants to receive aid.
Seven banks have had their assets blocked by judicial rulings this month in three separate actions, and the current proposal returns to parliament amid intensifying tussles between certain judges and banks.
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