Strict Judicial Controls Constrain the Financial Gap Law

A Constitutional Council decision in Lebanon invalidating Article 3 of the banking reform and reorganization law, following a challenge by President Joseph Aoun, has set the course for addressing the financial gap and recovering deposits. According to Asharq Al-Awsat, the ruling restores Banque du Liban to a central role in bank restructuring and tightens judicial controls, intersecting with a State Shura Council opinion that bars writing off deposits or canceling the central bank’s debts without explicit legislation. This affects the financial gap bill and IMF negotiations, while about $80 billion in deposits remains suspended.