PM pledges to resolve coops’ financial rights

Committee to oversee distribution of $50 million to coop stakeholders

Prime Minister Najib Mikati pledged to form a committee to resolve the issue of the outstanding funds of Coop Lebanon stakeholders within one week after the Fitr holiday.

The temporary committee will oversee the implementation of a law which entails providing a financial credit of LL75 billion ($50 million) to the stakeholders, prior to selling the coop’s fixed assets.

According to Law 109, ratified in 2010, the funds are dedicated to finalizing a comprehensive settlement with the right holders in the coop, which include shareholders, depositors, and creditors. The law states that half of the credit will be allocated to shareholders and depositors, while the other half would go to debtors.

The law states forming a committee - with powers similar to those of a board of directors- tasked with carrying out an inclusive assessment of the assets and liabilities of the cooperatives. After negotiations with the committee, the right holders will be given a duration of six months to register their rights.

Around 23,500 shareholders and depositors at the coops have been waiting to retain their financial rights for more than a decade.