kareem_nasser wroteHaircut was already taking place since October, with the dual exchange rates and capital controls.
Our economy is around 70% in dollars and this is tragic given that it isn't productive. There are a ton of reason this being the case and of course corruption is one of them.
What is being rumored now is basically Haircut/freeze on dollar account holders and you will be provided with shares held for 6 years (maturity). Not sure about the reset of the details yet but seems the image is becoming clearer (more kicking the can).
Yep , the Minister of Finance will propose two additioanl things which will be most probably be implemented and the cabinet will approve for execution.
1- To legalize and standarize all capital control being taken since September 2019 and increased.
2- To give the BDL Governer special authorities over the banks he doesnot used to have.
3- To freeze all dollars deposits and giving the depositors an LBP rate of 2000 instead of 1515 , in case they want to withdraw. To clear yet if LBP account depositors can withdraw USD from inside the bank at a rate of 2000 LBP too.
To sum it up , it is "theft in a legalized way". The whole system is collapsed. Commercial banks used to give high interests on USD and LBP as a motivator for people to put their money. Many people through the years deposited a lot of money. Fiscal deficit always exists, due to corruption and a system controlled by warlords mainly. The government has been always requesting money as debt from commercial banks. The commercial banks bough EuroBonds for the sake of the government .. Now BDL liquidity is low no money to payback for EuroBonds .. Commercial banks are in trouble.. A loop with one corrupted system that collapsed on each other.1