Lead:
Sources familiar with Lebanon's economic affairs told Al-Addiyar that the country exited Paris meetings still on the Financial Action Task Force's gray list because the state — not the central bank or commercial banks — failed to implement structural economic reforms. The Financial Action Task Force, meeting with representatives from over 200 countries and international bodies, determined that Banque du Liban and commercial banks fulfilled their mandated obligations within the deadline, while the state did not, citing weakness in institutional effectiveness. The Task Force imposed ten conditions for completing structural economic reform.
Voices & Positions:
In Al-Addiyar, unnamed sources argue that Lebanon's gray-list status reflects a failure of governance rather than banking sector intransigence. The state's inability or unwillingness to honor commitments — not capital controls or monetary policy — accounts for the continued listing, they contend.
In Al-Akhbar, unnamed sources report that depositors, facing a financial recovery plan that would distribute the first $100,000 of their holdings in installments over six years and the remainder as twenty-year bonds approaching zero value, have begun converting deposits at the rate of 15,000 Lebanese pounds per dollar to contain losses from what they characterize as "concealed write-down" orchestrated by authorities and the International Monetary Fund.
In Al-Addiyar, Saad Al-Azhari, chairman of Banque du Liban et de l'Emigration, is quoted emphasizing the necessity of enacting financial gap legislation and restoring deposits to depositors, arguing that resolving the crisis and rehabilitating the banking sector form the foundation for restoring confidence and enabling banks to meet obligations. Al-Azhari acknowledged that some banks will exit the market or merge with others, signaling explicit acceptance of sector restructuring.
Tension & Convergence:
Both analyses agree that institutional failure — not sectoral incompetence — blocks progress. Sources and Al-Azhari align on the primacy of deposit restoration and structural overhaul. The divergence lies in culpability: unnamed sources blame state apparatus generally; depositors and financial commentary identify monetary and political authorities specifically in orchestrating erosion of savings.
Editorial Takeaway:
The dominant voice today is that Lebanon's international financial standing deteriorates because the state apparatus, not its banking system, refuses or cannot implement the governance reforms required for gray-list exit.