BDL to prepare draft
of bank restructuring plan

No unilateral approach, compromise needed from all stakeholders

The Central Bank (BDL) said it will propose an initial draft of a comprehensive bank restructuring plan that will prioritize protecting small depositors and gradually recapitalizing the banks to enable them to resume lending and contribute to economic growth.

“It will not be a unilateral plan imposed by the Central Bank. The approach will rather be collaborative, coherent, and flexible. It should eventually receive the support and approval of the relevant stakeholders, including the State, the Central Bank, and commercial banks,” BDL said in statement.

It said that Parliament will play a critical in enacting the legislation necessary for implementing the final version of the plan, particularly the Finance and Budget Committee and the Administration and Justice Committee, and that this will require compromises from all stakeholders.

The draft of the restructuring plan will be prepared through concerted efforts and coordination among BDL’s senior officials including the Governor. It will later be discussed by the International Monetary Fund (IMF), the Prime Minister’s Office, relevant ministries, selected presidential advisors, and international financial consultants.

BDL said: “It is crucial to have one goal, not one plan for all stakeholders including the Central Bank.”