The Lebanese State vs. The Banks: The "oil jug story"
Money, money, money There is an ongoing if slow burning war of words, arguments and counter arguments, between Lebanon’s commercial banks and the State, which includes the State owned Banque du Liban. Run independently by a board and a governor, the extraordinary amount of power and independence allowed BDL’s governor makes him a central figure in the unfolding financial tragedy. This war of words is seeing ever rising levels of acrimony between former “partners”, in both politics and money, over who ultimately is responsible for the huge gaping hole in our financial system which deprived the Lebanese of their hard earned savings and institutions and private businesses of their liquid capital. Each side has their truth to tell, each side’s tale differs wildly in their conclusions as to who has the legal and moral obligation to provide restitution. A recent ruling by the State Shura Council, while “inapplicable at present” as stated by the Association of...