Capital Controls are financial controls that are taken by the state for temporary periods, according to which it places restrictions on cash withdrawals from banks, and on transfers of capital to and from this country.
In all countries of the world, officials seek to adopt this law quickly, especially in times of crises, given its importance in achieving monetary and financial stability, except in Lebanon, two and a half years have passed since the financial crisi,s and the Capital Control Law was not issued “for further study”. Therefore, transfers abroad are legitimate and without restrictions. What if this law was approved at the beginning of the crisis, would it have put an end to the financial hemorrhage?
Today, in an attempt to curb the new deterioration on the flaming fronts, Prime Minister Najib Mikati’s meeting with the pillars of the economic authorities opened a relatively promising gap in the aggravating crises’ thick wall, promising the re-establishment of the “Capital Control” bill on the path of approval in the House of Representatives, including observations and corrections, as required by the International Monetary Fund. What is its importance today? And how will the Association of Banks react to this step?
Will this law evade banks from lawsuits filed against them? Or it will be modified, so all the measures taken by the banks are subject to accountability?
What is required today is to find an actual legal solution, as it is not in anyone’s interest to leave matters as they are because their aggravation negatively affects the economy, the banking sector and depositors alike.