The Faculty of Law and Political Science at Beirut Arab University organized a lecture titled "The Law on the Restoration of Deposits and the Required Financial Regularity, and the Stages of its Achievement." The lecture was delivered by the former Chairman of the Banking Control Commission and current Advisor to the Minister of Finance Mr. Samir Hammoud. The seminar was moderated by the Head of the Penal Law Department Professor Judge Fawzi Adham.
The event was attended by the Chairman of the Board of Trustees of the Al-Birr Wal-Ihsan Waqf and Chairman of the Board of Trustees of Beirut Arab University Dr. Ammar Houry, the President of Beirut Arab University Professor Wael Nabil Abdel Salam, Judge Habib Mezher, the former President of the Banking Control Commission Mr. Walid Naja, the Dean of the Faculty Professor Mohamed Abdel Rahim, as well as faculty deans, teaching staff, and a crowd of legal professionals, media figures, and students.
To begin with, Professor Judge Fawzi Adham welcomed Mr. Samir Hammoud and the attendees, stating that "This lecture was dedicated to a topic of paramount importance in our Lebanese economic, financial, and humanitarian reality: the Law on the Restoration of Deposits and the Required Financial Regularity, and the stages of its achievement. It is a law awaited by all Lebanese, as well as our Arab brethren who have lost their deposits, because of its direct impact on the rights of depositors and the future of the banking and financial system in our country."
Mr. Samir Hammoud spoke about the systemic crisis, considering it a "comprehensive crisis because it affected the Ministry of Finance with default in repayment, affected banks with cessation of payments, affected the Central Bank which is still unable to provide banks, and inevitably affected depositors. After six years of the crisis, it has become essential to focus on how to resolve it."
He also pointed out that "the economy has dropped from 45 billion dollars to 18 billion dollars, and therefore this is a failure of an entire system, not the fault of a single individual. I do not object to the right of banks when they say this is a systemic crisis, but this definition and its repercussions on civil liabilities must be clarified, because we are primarily concerned, and what matters most to us is the welfare of depositors' money. The rights of the people are the weakest link, and the state must be the good guardian and defend these rights, as the banks are capable of continuity and defending themselves, as are the Central Bank of Lebanon and the public treasury."
Hammoud continued: "Even judges in the courts suffered from the inconsistencies in the laws they had to adopt during the crisis, and everything that was ruled based on old legislation is incorrect. The judiciary must realize that it is in dire need of new legislation upon which to base its decisions."
Hammoud concluded his speech by saying: "Our country is closed and in a state of isolation. We must move from the domestic sphere to the financial markets, and there is no way to do this except by agreement with the International Monetary Fund. The biggest goal for banks must be to protect people's money and absorb losses so that their funds are not affected."
The seminar concluded with a dialogue between the audience and Mr. Hammoud.
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