Report: Financial Concerns Surface as OECD Characterizes Lebanon as Negative

Concerns on Lebanon's inability to join the international financial laws that ensure its survival in the global financial system will surface again by the beginning of September when the due signing date of the Global Account Tax Compliance Act GATCA agreement looms in light of an existing government crisis, al-Joumhouria daily reported on Tuesday.

Twenty four hours separate Lebanon from the beginning of September, and if it fails to sign the agreement, the country is threatened with being blacklisted, taking into consideration the political paralysis at several levels and the blocked horizons for the restoration of the constitutional institutions.

Well-informed banking sources told the daily that Lebanon has not signed the GATCA agreement although it is committed to signing the act foreseen in September.

The sources revealed that the last report of the Secretary-General of the Organization for Economic Cooperation and Development (OECD) Angel Gurria, pointed out that Lebanon is among the countries that will be difficult for them to move to the second phase of the GATCA system, that is the signing of the Convention within the deadline.

The sources pointed out that the OECD report has characterized Lebanon as negative and noted that the country suffers from “legal problems, and that there are bills to be decided in the cabinet and the parliament for the country to be able to sign the convention. These problems are related to banking secrecy and other issues,” said the report.