| 18 May 2024, Saturday |

The collapse of the banking sector..serious economic, social and security repercussions

Economist Jassem Ajaqa stressed that “if the accountability of the Central Bank and the banks is a priority for reform, then careful assets must be taken into consideration, otherwise its repercussions will be dangerous on the economic, social and security levels.”

And he stressed in a radio interview that “the seizure of any bank leads to a problem with the payment of salaries and wages,” noting that “there are no guarantees that correspondent banks will not close the account of the Lebanese bank that you deal with with them.”

On the economic front, he pointed out that “this reservation leads to reduced consumption and further deflation, and therefore the budget approved by the government cannot achieve its figures.”

And he believed that “the collapse of the banking sector may bring Lebanon to a stage where the state is unable to secure the basics for its people, and therefore we will be at the mercy of the intervention of another state to secure them.” .

Ajaqa explained that the solution lies in the government’s setting up a recovery plan that bears common principles, most notably protecting people’s deposits, in addition to assuming its responsibilities in the issue of public debt.

  • Sawt Beirut International