|
|
|
|
|
Lebanon’s parliament passed its third amendment to the banking secrecy law in April 2025, as part of a renewed effort to meet the International Monetary Fund’s long-standing reform demands. In parallel, the cabinet unveiled a long-anticipated bank restructuring law, prompting cautious optimism over the eventual resolution of the financial crisis that has paralyzed the country’s banking sector since 2020. The timing of these measures was far from coincidental. They were announced as a Lebanese delegation headed to Washington DC for the Spring Meetings of the IMF and World Bank.
|
|
|
|
The moves reflect the desire of the recently formed reform-oriented government, which sought to bring “tangible evidence” of progress to the international stage. According to LIMS, the authorities can also stress on the recent macroeconomic gains, including the currency stability since mid-2023 and a fiscal surplus recorded in 2024. These developments offer the delegation a stronger hand in negotiating a new programme with the IMF, especially that the pre-conditions outlined in previous staff-level agreement are no longer appropriate given Lebanon’s altered context.
On the substance, the latest revision to Lebanon’s banking secrecy framework broadens the scope of access to financial information allowing independent auditors, supervisory authorities, and the central bank to review banking data with a 10-year retroactive reach. Crucially, investigators may now search records by individuals' names rather than being limited to account numbers—a shift aimed at enhancing the capacity to identify those who transferred funds abroad after capital controls were informally imposed in late 2019. The ability to trace the outflow of funds during the crisis, when ordinary citizens were locked out of their deposits, is considered a key element in restoring public confidence and meeting international transparency standards.
Meanwhile, the newly introduced bank restructuring law seeks to address a long-standing legal vacuum in Lebanon’s approach to financial sector resolution. The law establishes a formal mechanism for handling future bank failures, which until now had no clearly defined legal framework. However, its relevance to the current crisis is limited. This legislation does not propose a roadmap for resolving the present banking losses. Nonetheless, the new regulation outlines the authority that will oversee the restructuring process.
|
|
|
The Appointment of the ERA at the Centre of Lebanon’s Energy Reform
|
|
|
|
After decades of mismanagement and prolonged blackouts that have undermined the quality of life for millions, Lebanon’s new Minister of Energy and Water has pledged to reform the country’s electricity sector. At the heart of this long-overdue reform is a commitment to finally appoint the Electricity Regulatory Authority (ERA)—a step mandated under Law No. 462 since 2002 but deliberately delayed for over 20 years to preserve political control over the sector.
|
|
|
|
LIMS welcomed this development as a turning point for restoring dignity and basic rights to citizens. The uninterrupted access to electricity is not merely a technical issue—it is a matter of human dignity, safety, and the ability to live with decency. Children studying by candlelight, families sleeping without fans or heat, and hospitals operating on unreliable backup power are daily realities in Lebanon that no population should endure.
Through its Green Grid Leb initiative, LIMS stressed that the ERA must be granted full independence to open the sector to new entrants. A transparent, autonomous authority can break the monopolistic and clientelist grip that has left Lebanon in the dark for too long. Liberalizing the sector and fostering competition would enable private investment, create jobs, and most importantly, deliver a stable, sustainable, and high-quality power supply that respects every citizen's right to a dignified life.
The ERA’s mandate should include unbundling the sector into production, transmission, and distribution. It should also issue regulations to establish a level playing field for all operators, monitor adherence to technical and service standards, and ensure open and fair access to infrastructure. Consumers should no longer be hostage to a broken system but should be treated as empowered stakeholders whose wellbeing is at the center of energy policy.
In parallel with establishing the ERA, LIMS advocates for a people-centered option: allowing local-level production and distribution of electricity, particularly through private sector initiatives. Municipalities and communities—many of which have already organized informal power alternatives—should be empowered to legalize, regulate, and expand local energy solutions. Ultimately, Lebanon’s energy reform must be about more than fixing wires and transformers. It is about rebuilding trust, empowering people, and delivering the fundamental conditions necessary for a dignified life.
|
|
|
Syria Eyes Currency Reform Amid Regime Change
|
|
|
|
As Syria emerges from the political and economic wreckage of the Assad regime, renewed attention is being paid to overhauling its battered currency. A proposal under consideration is a redenomination of the Syrian pound, removing three zeros in an attempt to confront the legacy of hyperinflation and restore the currency’s role as a functional unit of account.
|
|
|
|
LIMS explained through its Syria’s Economic Renewal Journey (SERAJ) initiative that between 2010 and 2023, the Syrian pound lost over 99% of its value. Following the collapse of the Assad regime, however, the lira has shown signs of appreciation against the US dollar—reflecting both political change and a retreat from the extreme distortions of monetary policy.
Despite recent gains, the Assad family's portraits and excessive zeros on the currency continue to undermine its usability. SERAJ warned that removing zeros without structural monetary reforms could pave the way for renewed inflation and a fresh cycle of currency depreciation. If Syria is to proceed with currency replacement, the most prudent and expedient course would be to anchor the new currency to a currency board—ensuring full backing by foreign reserves and enforcing strict monetary discipline from the outset.
The currency board would prevent discretionary monetary expansion and thereby ensures price stability. The resulting fixed exchange rate would restore a vital degree of predictability to the business environment in Syria. For a country in urgent need of capital, credibility, and growth, the advantages of a currency board are manifold. First, it would immediately enhance investor confidence by removing the risk of monetary mismanagement—a prerequisite for attracting foreign direct investment, encouraging diaspora capital to return and create jobs. Second, by stabilizing the exchange rate, it would facilitate trade and incentivize broader fiscal reform.
In a region where monetary instability has too often compounded political volatility, Syria’s consideration of a currency board stands out as a potentially transformative move. It offers not just a symbolic break with the practices of the past but also anchors its recovery on sound money that may prove essential for building lasting peace and prosperity.
|
|
|
Gold Hits Record High Amid Global Turmoil, Opening Policy Window for Lebanon
|
|
|
|
In April 2025, gold prices surged to an unprecedented high of approximately $3,500 per ounce, driven by a confluence of geopolitical and macroeconomic pressures. LIMS explained that investors, wary of escalating global instability—including the protracted trade war, renewed tensions in the Middle East, and the ongoing conflict in Ukraine—have flocked to traditional safe-haven assets, propelling bullion prices to record levels. Central banks have also intensified gold purchases, diversifying away from the US dollar amid mounting concerns over its declining value. The weakening of the greenback has further amplified demand, reinforcing gold’s role as a hedge against both currency depreciation and systemic uncertainty.
|
|
|
For Lebanon, one of the world’s largest holders of gold relative to the size of its economy, LIMS argued that the rally offers a strategic opening. Amid its ongoing financial crisis and persistent monetary instability, the country could leverage its reserves by establishing a currency board backed by gold. This currency board could restore monetary credibility, anchor inflation expectations, and attract capital inflows—offering a path to economic recovery grounded in hard assets.
A gold-backed currency board would tie the local currency to a fixed quantity of gold, limiting discretionary monetary expansion and insulating the system from political interference. With global gold valuations at historic highs, such a move could enhance Lebanon’s credibility and serve as a stabilising force in an otherwise fragile financial landscape.
|
|
|
LIMS Leaders Academy Concludes Two Years of Empowering Local Activists
|
|
|
|
The LIMS Leaders Academy (LLA) 2023-2024 program recently concluded, culminating a two-year initiative that hosted a series of workshops for local activists in different Lebanese regions and districts. Over the past two years, 32 participants from these workshops ran in the 2025 municipal elections, with 11 successfully getting elected.
|
|
|
|
To bring the program to a close, LIMS organized two key events. First, on April 12 and 13, LIMS hosted the LLA 401 – Policy Fair, featuring a series of parallel breakout sessions. These sessions, attended by 35 local activists from across Lebanon, focused on critical topics such as waste management, water resources, tourism development, and electricity sector challenges.
Following these workshops, and as a final program event, LIMS held the LLA 501 National Meeting on April 26, 2025. This event brought together 50 attendees, including participants who successfully completed the program, journalist and academics. The workshop featured three panels addressing: (1) Local delivery of electricity, water, and sanitation services; (2) Addressing waste management challenges at the municipal level; and (3) Enhancing local tourism and the economy. Each panel began with participants presenting their ideas for 1-2 minutes, followed by an open discussion moderated by facilitators.
By equipping local activists with the tools, knowledge, and platform to tackle pressing municipal issues, LLA has produced a new generation of reform-oriented municipal leaders. The election of 11 alumni to public office underscores the program’s real-world impact, while the Policy Fair and National Meeting showcased the depth of participant-led solutions to Lebanon’s most urgent local challenges.
|
|
|
Decentralization Key to Reviving Local Economies
|
|
|
|
As part of the “My Municipality, My Development” conference series, a policy analyst from the LIMS was invited to a discussion on municipal governance in the Gharb region. Speaking to local leaders and stakeholders, the analyst underscored decentralization as a path to balanced development and municipal empowerment—arguing that when municipalities are granted the autonomy to manage local affairs, they can more effectively deliver essential services such as electricity, water, and waste management.
|
|
|
|
He placed particular emphasis on the need for municipalities to be able to attract private investment in these sectors, especially in a country where state institutions remain deeply weakened. Allowing private actors to produce and distribute electricity or manage water and waste at the municipal level can dramatically improve service delivery and accountability.
In the Lebanese context—where chronic power shortages, poor waste management, and failing water networks have become the norm—privately delivered municipal services could offer a lifeline to communities. By enabling local governments to partner with the private sector, municipalities can bypass national gridlock, create jobs, and improve living conditions, while ensuring that services are better tailored to the needs of residents.
|
|
|
References
LIMS Media Interviews
|
|
|
|
Lebanon Moves to Revive IMF Talks with Fresh Reform Push
- Deposits In Banks After Appointing A Governor For The 'Central Bank'. Neither White Nor Black, April 2, 2025: Al Anbaa KW, Article AR
- Invitation From the Central Bank Governor for Banks to Increase Their Capital or Merge, and Under What Mechanism? April 7, 2025: VDL, Audio Interview AR
- Lebanon... American Messages Surround Hezbollah's Influence, April 10, 2025: Al Hurra, Article AR
- Lebanon Faces a Confidence Test in Washington: Could It Be the Last One? April 11, 2025: Al Modon, Article AR
- Bank Restructuring Law... Superficial Solution to a Deep Crisis, and Depositors Are Left Out of the Equation! April 11, 2025: VDL News, Article AR
- Lebanon Takes Its First Steps Towards Reforming The Banking Sector, April 16, 2025: Al Jadeed, Video Interview AR
- Has Lebanon Entered A Revolutionary Path To Revive The 'Economy'? April 22, 2025: Al Yawm, Video Interview AR
- Lebanon Attends IMF Meetings Armed With Substantial Files, Has The Moment Of Truth Arrived? April 22, 2025: NBN, Video Interview AR
- The Lebanese Are Paying The Price Of Appeasing The International Community: MPs Postpone The Crisis, April 24, 2025: Al Modon, Article AR
- The Lebanese Government Approved The Bank Restructuring Law: What Impact Will It Have On Lebanese Deposits, April 25, 2025: SBS Arabic, Audio Interview AR
- Lebanon Will Not Head Toward Removing Zeros From The Lebanese Pound, April 29, 2025: Sky News Arabia, Video Interview AR
The Appointment of the ERA at the Centre of Lebanon’s Energy Reform
- Ministers Prevented It And Serious Damages Due To Its Absence… Will The Regulatory Authority Illuminate The Darkness Of Electricity? April 7, 2025: Lebanon 24, Article AR
Syria Eyes Currency Reform Amid Regime Change
- The Syrian Currency… Between Replacing The Assad Family's Images And Removing The Zeros, April 25, 2025: 963 Media, Article AR
Gold Hits Record High Amid Global Turmoil, Opening Policy Window for Lebanon
- Gold's Rise Beyond Expectations, Will It Change The Economic Rules? April 25, 2025: VDL, Audio Interview AR
Decentralization Key to Reviving Local Economies
- Local Discussion In The West. Financial Minister's Advisor: To Enact Administrative Decentralization Achieving Development, April 3, 2025: Al Anbaa Online, Article AR
|
|
|
|
|
|
|
|
