Lebanon's banks fear state takeover

Representatives of the banking sector of Lebanon say that the plan to rescue the government could lead to the takeover of banks by the state, on May 1 reports Reuters. This is the state's takeover of the banking sector. I do not understand how this will restore trust, notes the chief economist of Byblos Bank Nasib Gobryl. Gobril said the government's measures would leave the banking sector simply unable to issue loans to support the economy. The government has no money to save the banks so they want the banks to save the government, Blominvest Bank spokesman Marwan Michael said. Analysts note that in addition to seeking IMF assistance, the Government of Lebanon intends to compensate for financial losses from the funds of large depositors. Read also: