Lebanese govt slams bank association's rejection of financial recovery plan

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Association of Banks in Lebanon building is pictured in downtown Beirut, Lebanon September 25, 2017. REUTERS/ Aziz Taher

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May 24 (Reuters) - The Lebanese banking association's rejection of a financial recovery roadmap passed last week by Lebanon's cabinet is "dangerous and irresponsible", a senior government official said on Tuesday.

According to a document seen by Reuters, the plan would cancel "a large part" of the central bank's foreign currency obligations to commercial banks and dissolve non-viable lenders by November.

The Association of Banks in Lebanon said on Tuesday that the plan places the full losses of the country's economic meltdown on depositors.

"The attempt to link the fate of their money with the depositors is dangerous and irresponsible," the office of the prime minister said on Twitter, citing Saade Chami, the deputy prime minister in the caretaker cabinet of Najib Mikati.

The plan was approved by cabinet in its final session, hours before losing decision-making powers following the election of a new parliament on May 15.

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Reporting by Maher Chmaytelli; Editing by Jan Harvey

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