Political divisions in Lebanon over a controversial banking bill could derail the country’s drive to pass reforms that would secure an IMF deal and pull it out of its crushing financial crisis.
The draft law is the most important in a series of reforms Prime Minister Nawaf Salam’s government has introduced since taking office last year, vowing to restructure the banking sector and negotiate a deal with the IMF where its predecessors had failed.
Lebanon’s 2019 economic collapse, triggered by a foreign currency crunch and decades of policies by a central bank governor facing embezzlement charges, which he denies, was ranked by the World Bank as one of the worst globally in nearly two centuries.