Sfeir Rejects Haircut: Political Class Seeks to Make Banks Shoulder Responsibility

Head of the Association of Banks in Lebanon Salim Sfeir rejected any haircut on bank deposits, and explained in direct talks with the American Task Force for Lebanon the proposed suggestions to steer Lebanon out of its economic crisis, media reports said on Friday.

In an online video conference, Sfeir said the ABL had rejected any default on Lebanon’s foreign debts that threatened the savings of depositors.

He said the current political class seeks to make banks shoulder the responsibility.

Media reports quoted Sfeir as saying that the state's failure to pay Eurbonds in March was not necessary, and stressed that the Lebanese banks have proven strength and immunity in the face of wars and successive political crises over the past years.

Sfeir also revealed that total bank deposits declined from $ 173 billion in September 2019 to $ 150 billion today, with a decline that is not considered significant, especially since a large part of the money was used to cover debts in foreign currencies.