Shareholders and depositors of Lebanon Coops demand end to crisis

The committee of shareholders and depositors at Coop of Lebanon (Association of Consumption and Production) discussed yesterday with the head of the interim committee, Mohieddine Doughan, results of proposed amendments of bylaw 109. The latter, to recall, allows the finance ministry to dispense a LBP 75 billion advance as compensation to rights holders, half of which is allocated as settlement with shareholders/ depositors and the other half to creditors. The meeting also reviewed a mechanism to finalize the amended draft to be approved by the legislative budget and finance committee and later by Parliament. Shareholders and depositors stressed in a statement their commitment to basic principles for any imminent solution to the impasse in accordance with the texts of Law 109 as agreed with the interim committee. This provides for a revision or adjustment of Article 3, paragraph C, (which gives any creditor the right to object to the settlement, and therefore, veto the execution of the law), to become as such: in the event of the rejection by any creditor/ bank or their decline to sign the settlement pact, their rights are automatically relinquished and terminated. The committee will then submit a report to the Cabinet to decide on the issuance of financial advances to consenting creditors/ banks (who agreed to the settlement). In conclusion, the shareholders and depositors appealed to the presidencies of the Parliament and the Council of Ministers to intervene directly in order to put an end to the delay in endorsing amendments and ending the 17-year old crisis. ( Al Akhbar, August 9, 2017)

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