Bou Saab says capital control law to be approved in next session
Deputy Speaker Elias Bou Saab announced Monday that the joint parliamentary committees are expected to approve the long-awaited capital control law in their next session.
“In principle, one session remains to approve the law and its amendments,” Bou Saab said after a session on Monday.
The draft law will still need to be approved by the 128-member parliament.
“We MPs will never agree to legislate any law that would write off the deposits,” Bou Saab reassured.
“It was clear today that the capital control will be finalized by the joint committees and will only take into consideration the rights of depositors,” the Deputy Speaker added.
According to TV networks, the law will allow transfers to outside the country for the exclusive purposes of education and medical care and will set a “minimum” monthly withdrawal amount of $800 for dollar accounts.
09 January 2023, 23:16
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The capital control law that was implemented in September 2019 was seen as a negative development by many because it restricted the ability of individuals and businesses to access their own funds and made it more difficult to conduct financial transactions. This has had a number of negative consequences, including making it more difficult for businesses to pay for goods and services, slowing down economic activity, and increasing the cost of doing business.
In general, capital controls have had a negative impact on the confidence of investors and consumers in the economy, which has contributed to the ongoing economic crisis in Lebanon. Some experts have argued that the capital controls have exacerbated the crisis by undermining confidence in the financial system and making it more difficult for people to access the funds that they need to meet their financial obligations.
Lebanon needs major structural reforms, not patch up laws.
