In response to the government’s financial recovery plan, Association des Banques (ABL) has published its Contribution to the government’s financial recovery plan on the 20th of May 2020.
Although the title indicates that ABL’s financial plan is a contribution to the government’s plan, it is clear that it fundamentally opposes to it by postponing the resolution of one of Lebanon’s main urgent problems: the USD losses. In this report, we provide a critical analysis of ABL’s contribution. We believe that the “ambitious plan for Lebanon” and its apparent socially oriented suggestions underline a selfish strategy that primarily benefits the banking sector to the detriment of urgent needed economic reforms. Hence, we argue that all ABL plan revolves around a primarily focus - avoiding internal default - to the detriment of urgent needed economic reforms.