Latest news with #LeaFayad
LBCI
4 days ago
- Business
- LBCI
From scoop to spike: Why your next tub of ice cream may cost more
Report by Lea Fayad, English adaptation by Karine Keuchkerian If ice cream is your go-to comfort when it's hot or you're stressed, brace yourself—prices could soon "melt" your budget. Supermarket ice cream may soon get more expensive due to a sharp increase in the global price of coconut oil, a key ingredient in many brands. Coconut oil helps ice cream maintain its texture and freeze properly. But the pressure isn't just coming from the dessert aisle. Demand for coconut oil is surging worldwide, fueled by its use in food products, cosmetics like shampoos and creams, and even as a biofuel alternative in some countries. This spike has already impacted the prices of other goods such as coffee and cocoa, which are also viewed as commodities for investment.
LBCI
4 days ago
- Business
- LBCI
IMF challenges Lebanese bank law over unequal payouts and public sector favoritism
Report by Lea Fayad, English adaptation by Mariella Succar If you have three frozen bank accounts in three different Lebanese banks, each holding $100,000 or more, how much can you expect to recover? According to the Lebanese government's proposed bank restructuring plan, a single recovery cap would apply across all your accounts—meaning you would be eligible to reclaim a set amount from only one account. The International Monetary Fund (IMF) takes a different view. It recommends that the compensation cap apply to each account, not a consolidated total. If the government decides to reimburse $100,000, you will receive just that amount under its plan—while the IMF believes you should get $300,000. In its feedback, the IMF criticized the government's approach of aggregating accounts across banks, calling it 'not adequate.' The fund argues this method fails to meet international standards and undermines fairness. The IMF also raised concerns over the government's proposal to repay public sector deposits ahead of those of private depositors. Such preferential treatment, the fund warned, would violate global norms and disproportionately disadvantage individual account holders. Another key recommendation from the IMF is that the bank restructuring law must take precedence over all other legislation in Lebanon. Without that, the fund cautioned, the country risks facing legal and procedural challenges when the law is implemented. These are just a few of the 20 observations submitted by the IMF regarding the draft bank restructuring law, which was approved by the Cabinet and is now under review by Parliament. A subcommittee of the Finance and Budget Committee is currently studying the law in detail. The IMF's comments also addressed the proposed structure of the Higher Banking Commission, the role of Lebanon's Banking Control Commission, and the technical processes for assessing the financial standing of banks. The fund shared its observations directly with the Finance Committee, emphasizing that these changes are essential to restoring confidence in the banking system and ensuring long-term stability in Lebanon's financial sector. It remains to be seen whether lawmakers will incorporate the recommended amendments and whether the IMF will ultimately approve a revised version of the law—or if Lebanon will still face a long road to financial recovery.
LBCI
24-04-2025
- Business
- LBCI
Reforms unlocked with banking secrecy lift: Lebanon expands access to bank records to trace crisis roots
Report by Lea Fayad, English adaptation by Yasmine Jaroudi Lebanon's Parliament passed key amendments to the banking secrecy law with an overwhelming majority of 87 votes in a general session, marking a significant step in the country's financial reform agenda. The new law allows for broader access to banking information, aiming to hold accountable those who benefited from financial engineering schemes, capital flight, or subsidy misuse. The updated legislation introduces retroactive application over 10 years, enabling authorities to investigate bank accounts dating back to 2015—a year widely seen as the beginning of Lebanon's financial collapse, notably due to questionable central bank policies. The amendments do not give blanket authority to lift banking secrecy. Only seven official authorities are permitted to request access to bank accounts: previously allowed were the judiciary, the Special Investigation Commission at the Banque du Liban (BDL), the Finance Ministry's tax administration, and the National Anti-Corruption Commission. Added to the list are the BDL itself, the Banking Control Commission, and the National Deposit Guarantee Institution. Under the revised law, these seven official bodies will now be authorized to directly request detailed information from banks regarding suspect accounts and their beneficiaries. An additional provision introduced during the session allows resident auditors and audit firms to access this information upon request from the International Monetary Fund (IMF), a move designed to meet IMF conditions tied to Lebanon's broader reform commitments. Though the law's retroactivity was set to 2015, some MPs—particularly from the Free Patriotic Movement (FPM)—voiced objections, calling for the timeline to stretch back to the early 1990s when they argued the roots of Lebanon's financial crisis began. The objection was not adopted. Legal sources say information obtained under the new law will be referred to the appropriate judicial authorities, such as the Financial Public Prosecutor's Office, to take necessary legal measures. The law will officially take effect upon publication in the official gazette this coming Thursday. If needed, the Cabinet may issue further decrees—on the recommendation of the Finance Minister and in consultation with BDL—without delaying the law's implementation. Seen as a cornerstone of Lebanon's financial reform package, the amended law is tightly linked to the planned banking sector restructuring law and the long-awaited financial gap law. It is expected to aid in distinguishing between legitimate and illicit deposits as part of the broader effort to return stolen or misused funds. Yet, the accurate measure of success will lie in execution.
LBCI
19-04-2025
- Business
- LBCI
Key IMF demands unmet as Lebanon readies for US meetings
Report by Lea Fayad, English adaptation by Karine Keuchkerian Lebanon was expected to attend next week's meetings in Washington with key reforms in hand, as requested by the International Monetary Fund (IMF). These included the passage of banking secrecy and bank restructuring laws in Parliament. The country was also expected to finalize appointments to the Council for Development and Reconstruction. However, those steps remain incomplete. The IMF had hoped Parliament would pass both laws ahead of the meetings but has acknowledged the government's efforts to prepare the legislation quickly. This message was relayed to the Lebanese delegation heading to Washington, including Lebanon's finance and economy ministers, the country's central bank governor, and advisers. According to the Lebanese finance minister, Parliament Speaker Nabih Berri is pushing to pass the two laws before the end of the month. Parliament's bureau is expected to place the amended banking secrecy law — approved last Wednesday by parliamentary committees — on the agenda for an upcoming vote. Meanwhile, the bank restructuring law, approved by the Cabinet last Saturday, is headed to the committees for review before reaching the general assembly. As for appointments to the Council for Development and Reconstruction, sources in the Lebanese delegation say the process is underway based on a government-approved mechanism. More than 600 candidates have applied, and their files are under review. From Monday to Friday next week, in addition to meetings with the IMF, the Lebanese delegation will hold talks with international institutions, including the World Bank, to present the reform plan and assess readiness for support and reconstruction efforts. Meetings are also planned with global companies — some owned by Lebanese nationals — to explore potential investments in Lebanon.
LBCI
18-04-2025
- Business
- LBCI
Banking secrecy no more? Lebanon bill takes aim at financial wrongdoing
Report by Lea Fayad, English adaptation by Karine Keuchkerian Whoever you are, you will no longer be able to hide behind banking secrecy in Lebanon to conceal information about your account if you are accused of corruption, money laundering, tax evasion, or similar crimes. A draft law amending banking secrecy regulations has been referred by parliamentary committees to the General Assembly, which is scheduled to convene Tuesday and vote on whether to pass it into effect. This new version of the law includes changes to the 2022 banking secrecy amendment based on recommendations from the International Monetary Fund (IMF), which had previously deemed the earlier version insufficient. So, what are the main changes? 1. A 10-year retroactive effect from the date the law is enacted This means the law will apply to all bank accounts dating back to 2015. Why 2015? According to government sources, that's when early signs of the financial crisis began to appear — most notably through financial engineering policies. Anyone who benefited from financial engineering schemes, anyone who transferred money abroad while banks were refusing to give citizens access to their dollars during the 2019 crisis, or those who profited from the subsidy program — all could be investigated under the law. 2. Expanding the list of authorities allowed to request the lifting of banking secrecy on suspicious accounts Under the 2022 law, this power was granted to the judiciary, the Special Investigation Commission, the tax administration, and the National Anti-Corruption Commission. The amended law also includes the Central Bank, the Banking Control Commission, and the National Deposit Guarantee Institution — which previously only had access to accounts for the purpose of bank restructuring. 3. Access to accounts by name, not just by account number Unlike the 2022 version, authorities will now be able to access suspicious accounts using individuals' names, not just numbers. Most importantly, this law is expected to promote transparency and accountability, facilitate the restructuring of banks, and help return deposits. In short, it is a step toward restoring confidence in Lebanon's banking sector — and without that confidence, few will feel safe putting their money in a bank.
