Mark my words. BDL will suggest a reverse quantitative easing, instead of debt restructuring, next year. Few big deposit accounts will be invited to a friendly forced conversion from $ to Lbp. When you know that 0.1% of accounts carry 20% of tot deposits...
I.e some $38bn. And 1% of accounts hold around 50% of total deposits or $90bn. So shave off 15% of 90bn into leb lira and gov would have eased off around $ 14bn of its debt. @ 9% interest. Not a haircut, but a beard trimming into leb liras term dep 10 years.
And it will ask (impose upon) banks to subscribe to eurobonds at 1 or 2%. Either this or default. Because the depositors moneys are already spent and gone. They only exist as an accounting entry in the books of banks and bdl.
Now talk to me about " other assets"
Now talk to me about " other assets"
Remember the 20% tier 1 capital imposed on banks did not bring fresh cash from banks free cash abroad. It was rather recycled from the difference between the 2.5% interest on deposits and the imposed BRR+3% on lending, with bdl still paying 8% to banks on their term dep. And in $
al mutanabbi eloquently said it 1500 years ago
جوعان يأكل من زادي و يطعمني
This should be the main focus of attention
جوعان يأكل من زادي و يطعمني
This should be the main focus of attention
