Economy Minister Says Lebanon Considers Using Depositors' Money to Rescue Crisis-Hit Banks

  • Economics
Economy Minister Says Lebanon Considers Using Depositors' Money  to Rescue Crisis-Hit Banks

Finance Minister Ghazi Wazni stressed that the Lebanese government is thinking of using depositors’ fund so as to solve its crisis-hit banks, saying that such plan includes a bail-in where a portion of deposits are transformed to shares in the bank.

“Without such reforms, deposits were at risk, Wazni said in an interview with the Financial Times.

“To preserve the money of depositors, you need banking restructuring,” he added.

Other measures being considered included freezing dollar deposits for up to six years before paying them back in Lebanese pounds and creating a fund of state assets that depositors have to buy into.

Read the full article at the Financial Times: https://www.ft.com/content/0e790b4a-6905-11ea-800d-da70cff6e4d3

Source: Financial Times