Month: May 2024

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Preamble:

Whereas the need for restructuring and reforming the financial and economic systems of Lebanon has been recognized;

Whereas the current central banking system has been deemed ineffective in promoting economic stability and growth;

Be it enacted by the Parliament of Lebanon, the following legislation to abolish the Lebanese Central Bank is hereby established:

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Article 1: Definitions

1.1. “Central Bank” refers to the Banque du Liban (Bank of Lebanon), including all its subsidiaries, branches, and associated entities.

1.2. “Government” refers to the Republic of Lebanon and its duly authorized representatives.

1.3. “Transitional Authority” refers to the body established under this legislation to oversee the transition and liquidation process.

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Article 2: Abolition of the Central Bank

2.1. The Banque du Liban is hereby abolished as of the effective date of this legislation.

2.2. All functions, powers, and responsibilities of the Central Bank shall cease as of the effective date, except as provided for in this legislation for transitional purposes.

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Article 3: Establishment of the Transitional Authority

3.1. A Transitional Authority shall be established within thirty (30) days of the enactment of this legislation to oversee the orderly dissolution and liquidation of the Central Bank.

3.2. The Transitional Authority shall consist of:

• A Chairperson appointed by the President of Lebanon.
• Four members appointed by the Parliament of Lebanon, representing different political factions to ensure impartiality.

3.3. The Transitional Authority shall have the power to:

• Manage the assets and liabilities of the Central Bank.
• Oversee the transfer of essential functions to other governmental or newly established entities.
• Ensure the protection of depositors and creditors.

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Article 4: Transfer of Functions

4.1. Essential monetary functions previously performed by the Central Bank shall be transferred to a newly established Monetary Authority, under the Ministry of Finance, as per guidelines issued by the Transitional Authority.

4.2. Regulatory and supervisory functions over the banking sector shall be transferred to a new Financial Regulatory Agency to be established by separate legislation.

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Article 5: Asset and Liability Management

5.1. All assets and liabilities of the Central Bank shall be managed by the Transitional Authority for the purpose of liquidation or transfer to relevant entities.

5.2. The Transitional Authority shall prioritize the protection of depositors’ funds and the repayment of the Central Bank’s obligations.

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Article 6: Legal and Administrative Provisions

6.1. All contracts, agreements, and obligations involving the Central Bank shall remain in effect but shall be administered by the Transitional Authority until their fulfillment or reassignment.

6.2. The Transitional Authority shall have the authority to renegotiate, terminate, or settle any agreements as deemed necessary.

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Article 7: Reporting and Accountability

7.1. The Transitional Authority shall submit quarterly reports to the Parliament of Lebanon detailing the progress of the dissolution process, financial management, and any issues encountered.

7.2. A final report shall be submitted within thirty (30) days of the completion of the dissolution process.

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Article 8: Penalties

8.1. Any attempt to obstruct or interfere with the operations of the Transitional Authority shall be subject to legal penalties, including fines and imprisonment, as defined by Lebanese law.

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Article 9: Repeals and Amendments

9.1. All laws or parts of laws in conflict with this legislation are hereby repealed or amended as necessary to give effect to this legislation.

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Article 10: Effective Date

10.1. This legislation shall take effect immediately upon its passage and publication in the official gazette.

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End of Legislation