A Draft Capital Control Law Was Just Approved In Lebanon

A Draft Capital Control Law Was Just Approved In Lebanon

The Lebanese Finance and Budget Parliamentary Committee has approved a capital control draft law.

The draft was approved in a meeting of the Committee held on Monday, headed by MP Ibrahim Kanaan.

The move, which comes after months of discussions has been described as “too late” by some economists and activists, as it also comes after billions of dollars were moved out of Lebanon by corrupt figures.

It will be submitted for review in the “coming days,” MP Kanaan said after the meeting.

“The law, when issued, will be higher than any selective circular issued today and repealed tomorrow,” he added.

The draft, which Kanaan noted in a later statement is “neither complete nor final,” would enable every depositor in Lebanon to withdraw between 15 million and 20 million Lebanese pounds, and between $400 and $800, on a monthly basis.

The final decision and numbers in this regard will be taken when the draft is discussed in a plenary parliamentary session, the official noted.

According to Al-Jadeed, the draft will be studied by the Administration and Justice Committee and the Joint Parliamentary Committees before it is discussed in a plenary session.

It is to note that informal capital controls have been active in Lebanon since late 2019, when the country’s financial crisis prompted banks to lock depositors out of their funds as foreign currency reserves dwindled.

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