This surprising step, for Judge Ibrahim, was directed at an intense campaign of pressure. The discriminatory Attorney General, Ghassan Oweidat, only froze this decision, pending further study.
At this time, Lebanon’s financial situation “Corona” was absent from the front of interests, although the meter is still working and the injuries have reached the level of 16 declared. While the demonstrations and protests returned to the Lebanese streets, rejecting the policy of starvation and the deteriorating situation in the country.
Judge Ibrahim’s decision confuses everyone
Judge Ibrahim’s decision yesterday raised many unanswered questions about its timing, on the eve of the Lebanese government’s decision not to pay the Eurobond entitlement, which left no doubt that the conflict between some political authority and the banking sector was quickly remedied to prevent it slipping to unprecedented levels .In a context, a prominent economic expert revealed to the “brigade” that the action taken by Judge Ibrahim against the banks is not logical, but rather the implementation of political instructions by those close to the presidency to intimidate the banking sector to respond to irrational demands for entitlement to the Euro Bond after the government failed to find the required solutions and the time has become permanent .
The source pointed out that Judge Ibrahim’s action is a leap of the unknown and the interference of the banking sector in general and the free economic system with unforeseen risks and does not help at all in solving the problem, but rather complicates it and will have negative repercussions on Lebanon’s financial position in the region and the world.
The source considered that this measure expresses the confusion and impotence of the government and all the parties to the authority in proposing appropriate solutions to the crisis until the time despite all what is reported otherwise in the media and denying what is reported about an integrated rescue plan that has become in its final stages, pointing out that everything that is presented and discussed until the hour is just ideas and directions Consideration does not live up to the required plan.
The Association of Banks retracted the escalation
The judicial decision called for an escalation, even if not announced, from the Association of Banks, where the information spoke about a tendency to declare the strike indefinitely, and in the evening the Association of Banks met exceptionally to take the appropriate decisions in response to the decision announced by the Financial Prosecutor, and was looking at the possibility of taking a decision to close the banks Until an unspecified date. And based on contacts between the president of the Association of Banks Salim Sfeir and the official references, a delegation from the association visited the discriminatory public prosecutor, Judge Ghassan Aouidat, to discuss Judge Ali Ibrahim’s decision and to consult on the issue of bank closure. Al-Nahar learned that the delegation explained the repercussions of the decision on more than one level, starting with the relationship with correspondent banks, which will close all open credits to finance the import of oil, medicine and wheat. The decision also constitutes a threat to the banking reputation, so that dealing with Lebanese banks stops due to the suspicion of their board of directors, which indirectly affects their customers. Also, preventing the sale of real estate held by banks, including what is a settlement of debt, will lead to liquidation of liquidity.
It was later reported that Judge Aouidat visited the government house before issuing a decision to freeze Judge Ali Ibrahim’s decision regarding the banks ’right and withdraw it.
In the situations, Ain El-Tineh sources told Al-Akhbar that “everything that is said about the role of President Nabih Berri in this case is dishonorable. It is true that our position is known regarding the issue of Eurobonds and bonds and we are against payment, but we do not mix things up with each other.” The sources added that “The banks have erred in many of the measures that they have taken, and it is not permissible to portray them as absolutely innocent.”
Senior sources in the Free Patriotic Movement described Judge Ibrahim’s decision as “random,” because it “eliminates the rest of the banking sector.” She pointed out that this sector “definitely needs restructuring, and some bank owners are involved in smuggling money abroad and accelerating the collapse”, but “our primary concern is to preserve the depositors’ money, and to close or push banks to declare bankruptcy that will waste their savings.” The same sources indicated that the decision was “marred by legal flaws”, because “there is no such thing as preventing the disposal of assets because debts are also assets, and this harms the depositors. Also, the public prosecutor claims and does not judge.” She asked: “Was the investigation professional? Why did he not include some of the banks that the claim conditions apply to, while he claimed to banks that proved that they had not transferred money abroad after October 17 and had never traded in Eurobond?” On the other hand, the sources affirmed, “We certainly support the restructuring of the debt and not pay the sums owed to us at present, but we do so with the understanding and negotiation with the creditors.”
Eurobond entitlement on the doors
And not far from the judicial decision, the government started putting the final touches on the decision not to pay the “Eurobonds” entitlement, which was decided to hold a cabinet session on Saturday afternoon to announce it officially, according to what ministerial sources indicated to the newspaper “An-Nahar”, and ministerial sources said that the time remaining and The date for announcing the decision to defaults is no longer sufficient to enter into negotiations with foreign creditors, which he explicitly reported to the government, the consulting office “Lazar” in charge of managing the negotiations, which means in practice that Lebanon is going on Saturday to announce an unregulated default.
On Saturday, the government will hold a session at the Republican Palace to study the financial situation and the issue of “Eurobonds” to take the appropriate decision in this regard. The session will be preceded by an expanded financial meeting attended by Presidents Aoun, Nabih Berri, Dr. Hassan Diab and the ministers concerned to discuss options and the position to be taken. It was learned that President Diab will announce the position on the Baabda Palace after the session.
The “brigade” learned that the financial meeting will include the three chiefs, the deputy prime minister, the minister of defense, the ministers of finance and economy, the governor of the Banque du Liban, the association of banks and consultants.
During the session, the Council of Ministers listened to the financial and legal experts contracted by the state from the financial companies “Lazard” and “Cleary Gottlieb” to accompany the research regarding the “Eurobonds” bonds, in a way that puts the ministers in the atmosphere of the choice made and its implications, and the experts presented options before The government, in light of which the decision will be taken on Saturday.
And to understand that the experts will return to join the Council of Ministers tomorrow, to complete the research, without information deciding the possibility of reaching a decision in this session, in which case it will be extended to Sunday, knowing that all the options presented are difficult.
The “brigade” learned that the experts’ presentation lasted for about a quarter of an hour, and dealt with the generalities and did not address the details, and that some corrective measures and quick decisions must be taken, to be decided by the cabinet. The information mentioned that some procedures will be difficult or unpopular in some areas.
As soon as the government finishes the decision to pay the “Eurobond” or not, until the economic plan that the government is working on comes into play. In this context, the Lebanese people are awaiting at the same time what the “painful decisions” that the Prime Minister promised in the context of announcing his economic and financial plan to get out of the crisis in the country. In this regard, sources accompanying the Serail meetings pointed out that Diab reached a firm conviction that “what rubbed your skin like your fingernail” is under the stress of the certainty of the seriousness of the Arab and international boycott of his government and the lack of hope to extend a helping hand to it unless it adheres to the necessary reform conditions, and therefore sources revealed to “The nation’s call” that the prime minister will present a comprehensive economic and financial plan based on internal components to address the crisis and include a “basket of unpopular harsh measures”, in this context likely to include “raising the value-added tax (TVA) rate to 15% on luxuries 10% off the basics, plus E. Z to impose an increase of 5000 pounds on the price of gasoline, while most of the terms of the plan will depend on the principle of “supreme Alhtor” both in electricity or deposits in parallel with an emphasis on small depositors and middle-income protection. ”