Lebanese banks to strike next week to protest ‘arbitrary judicial decisions’

BEIRUT, Lebanon

Lebanese banks will strike as of March 14 in protest of “arbitrary judicial decisions”, a bank association said on Thursday.

In a statement, the Association of Banks in Lebanon (ABL) called for “quick legal measures to put an end to contradictory standards on issuing rulings that drain the remaining funds of depositors.”

It underlined the need “to correct the defect in some arbitrary judicial decisions.”

Since 2019, Lebanese banks have imposed restrictions on the withdrawal of funds in foreign currency amid a deep economic crisis in the country. Banks have also set ceilings on withdrawing funds in local currency.

The ABL said legal measures had allowed borrowers to repay foreign currency loans to the banks at the old official exchange rate of 1,500 Lebanese liras to the US dollar.

“However, banks were also obliged to pay or transfer some foreign currency deposits in cash, in the same currency,” it added.

The banks held the official authorities responsible for finding a comprehensive solution to the crisis.

“We find ourselves forced to strike as of Tuesday, March 14,” the ABL said.

Lebanon has been grappling with a severe economic crisis since 2019, leaving most people locked out of their bank accounts.

*Ikram Imane Kouachi in Ankara contributed to this report