Impact of IMF Recommendations on BDL’s Balance Sheet

The International Monetary Fund’s (IMF) visit to Lebanon last week came with several off the record proposed changes to the latest draft of the Financial Regularization & Deposit Recovery Law (commonly known as the Financial Gap Law) approved by the cabinet (see: IMF on Lebanon: Respect for International Principles in Bank Restructuring; and Need to Implement a Medium-Term Fiscal Framework). As part of its recommendations, the IMF requested a fresh assessment of BDL’s assets and liabilities. In this note, we examine how these proposed changes would affect BDL’s balance sheet, along with additional adjustments we believe are necessary.

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