Lebanon: US dollar savers fear they’ll foot crisis bill
2 years, 10 months ago

Lebanon: US dollar savers fear they’ll foot crisis bill

Al Jazeera  

Lebanese with savings trapped in US dollar accounts fear banks will be bailed out at their expense. Beirut, Lebanon – Members of professional syndicates and anti-establishment political parties gathered outside the Beirut headquarters of Lebanon’s commercial banks’ lobby last month to take a stand against a policy that has haunted savers in the country since it plunged into a financial and economic crisis over two years ago – lirafication. “Lirafication” describes a policy that would allow commercial banks to return depositors’ funds currently locked in United States dollar savings accounts in Lebanese pounds, also known here as lira. “As far as I know Prime Minister Mikati is doing his best to receive back their deposits.” Meanwhile, Lebanon’s commercial banks and central bank continue to pin the crisis on the government, which they’ve accused of gross mismanagement and enabling rampant corruption. And the head of the commercial banks’ lobby, Salim Sfeir, even said in a recent interview that the country’s banks are the “only hope” for restoring Lebanon’s prosperity.

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History of this topic

Poverty in Lebanon tripled over a decade, World Bank says
7 months ago

Poverty in Lebanon tripled over a decade, World Bank says

Associated Press  

BEIRUT — Poverty in Lebanon tripled over the course of a decade during which the small Mediterranean country slid into a protracted financial crisis, the World Bank said Thursday. The data provided the most detailed snapshot to date on the economic circumstances of the country’s population since the crisis that began in late 2019, although World Bank officials acknowledged it …

Poverty in Lebanon more than tripled in past decade: World Bank
7 months ago

Poverty in Lebanon more than tripled in past decade: World Bank

Al Jazeera  

Poverty in Lebanon has more than tripled over the past 10 years, with the overall proportion of the country’s population living below the poverty line soaring to 44 percent, according to the World Bank. The bank’s report, released on Thursday, was conducted in five of the country’s eight governorates, showing that poverty rose from 12 percent in 2012 to 44 …

World Bank projects that Israel-Hamas war could push Lebanon back into recession
1 year ago

World Bank projects that Israel-Hamas war could push Lebanon back into recession

Associated Press  

BEIRUT — The ripple effects of the war in Gaza are likely to knock Lebanon’s fragile economy, which had begun making a tepid recovery after years of crisis, back into recession, the World Bank said in a report released Thursday. Before the outbreak of the ongoing Israel-Hamas war on Oct. 7, the World Bank had projected that Lebanon’s economy would …

IMF warns Lebanon that the country is still facing enormous challenges, years after a meltdown began
1 year, 3 months ago

IMF warns Lebanon that the country is still facing enormous challenges, years after a meltdown began

Associated Press  

BEIRUT — Four years after Lebanon’s historic meltdown began, the small nation is still facing “enormous economic challenges,” with a collapsed banking sector, eroding public services, deteriorating infrastructure and worsening poverty, the International Monetary Fund warned Friday. In a statement issued at the end of a four-day visit by an IMF delegation to the crisis-hit country, the international agency welcomed …

Lebanon’s interim central bank chief vows not to lend money to government, calls for economic reform
1 year, 3 months ago

Lebanon’s interim central bank chief vows not to lend money to government, calls for economic reform

Associated Press  

BEIRUT — Lebanon’s interim central bank governor called on the country’s ruling class Friday to quickly implement economic and financial reforms warning that the central bank won’t offer loans to the state and does not plan on printing money to cover the huge budget deficit to avoid worsening inflation. Since taking office, Mansouri has been urging the government to pass …

Four years into crisis, Lebanon’s leaders hope tourism boom will help bypass reforms in IMF bailout
1 year, 4 months ago

Four years into crisis, Lebanon’s leaders hope tourism boom will help bypass reforms in IMF bailout

Associated Press  

BEIRUT — Four years into its historic economic meltdown, Lebanon’s political elites, masters at survival, are pushing for a recovery that would sidestep tough reforms demanded by the International Monetary Fund. Economic experts and former officials involved in designing Lebanon’s original IMF-approved recovery plan in 2020 say the political leadership and associates in the banking sector are deliberately implementing a …

Sanction elites to stop Lebanon from becoming a failed state
1 year, 4 months ago

Sanction elites to stop Lebanon from becoming a failed state

Al Jazeera  

Lebanon is four years into one of the worst financial crises in modern history, and in that time the country’s powerbrokers – the politicians, bankers and sectarian leaders – have been actively taking steps to speed the country’s descent into the abyss. While the elites who brought the nation to the verge of bankruptcy cannot agree on most things, they …

US, UK, and Canada sanction Lebanon’s former central bank governor over corruption allegations
1 year, 4 months ago

US, UK, and Canada sanction Lebanon’s former central bank governor over corruption allegations

Associated Press  

BEIRUT — The United States, United Kingdom, and Canada slapped sanctions Thursday on Lebanon’s embattled former central bank governor and a handful of close relatives and associates over allegations of corruption, the U.S. Treasury Department said. “Salameh abused his position of power, likely in violation of Lebanese law, to enrich himself and his associates by funneling hundreds of millions of …

Lebanon’s central bank governor ends 30-year tenure under investigation during dire economic crisis
1 year, 4 months ago

Lebanon’s central bank governor ends 30-year tenure under investigation during dire economic crisis

Associated Press  

BEIRUT — Lebanon’s embattled central bank governor stepped down on Monday under a cloud of investigation and blame for his country’s economic crisis as several European countries are probing his alleged financial crimes. the funds in the Central Bank will eventually dry up.” Salameh kicked off his tenure as governor in 1993, three years after Lebanon’s 15-year civil war came …

IMF says that without reforms, Lebanon faces ballooning inflation and public debt
1 year, 5 months ago

IMF says that without reforms, Lebanon faces ballooning inflation and public debt

Associated Press  

BEIRUT — Without reforms, Lebanon will continue to see triple-digit inflation, and public debt in the small, crisis-ridden country could reach nearly 550% of GDP by 2027, the International Monetary Fund warned in a report Thursday. Since the country fell into an economic crisis in 2019, the country’s “GDP has declined by about 40 percent, the has lost 98 percent …

Lebanese take to streets as anger over economic meltdown grows
1 year, 9 months ago

Lebanese take to streets as anger over economic meltdown grows

Al Jazeera  

Lebanese officers have fired tear gas at hundreds of people, mostly retired members of the security forces, who had gathered near government buildings in the capital to protests against deteriorating economic conditions. Reporting from the protest, Al Jazeera’s Zeina Khodr said Lebanon is in the fourth year of a deep economic crisis, which experts say has its root in decades …

How Lebanon’s Riad Salameh went from ‘world’s best central bank chief’ to ‘criminal’
1 year, 9 months ago

How Lebanon’s Riad Salameh went from ‘world’s best central bank chief’ to ‘criminal’

Firstpost  

Riad Salameh, one of the world’s longest-serving central bank governors, is being investigated for his personal wealth and is widely blamed for the country’s dramatic economic collapse. He was previously an untouchable figure in Lebanon, having held the position for three decades Beirut: Lebanon’s central bank chief Riad Salameh, once lauded for reviving the economy, faces investigations into his personal …

Lebanon’s pound hits a new low as banks go back on strike
1 year, 9 months ago

Lebanon’s pound hits a new low as banks go back on strike

Associated Press  

BEIRUT — Lebanon’s embattled currency hit a new low Tuesday, trading at an unprecedented 100,000 Lebanese pounds to the dollar on the black market as the crisis-hit country’s banks went back on strike. Last month, Lebanese commercial banks went on an open-ended strike and angry protesters took to the streets, smashing windows and setting tires on fire outside two of …

Lebanon leans on US dollar to cope as currency, economy tank
1 year, 9 months ago

Lebanon leans on US dollar to cope as currency, economy tank

Associated Press  

BEIRUT — When Moheidein Bazazo opened his Beirut mini-market in 1986, during some of the fiercest fighting in Lebanon’s civil war, he didn’t expect it to thrive. “Sometimes it feels like you’re working for free.” The Lebanese pound has lost as much as 98% in value since late 2019, and now most restaurants and many stores are demanding to be …

Lebanese banks suspend open-ended strike at PM’s request
1 year, 10 months ago

Lebanese banks suspend open-ended strike at PM’s request

Associated Press  

BEIRUT — Lebanon’s struggling banks on Friday decided to suspend their strike, which started earlier this month, for one week, at the request of caretaker Prime Minister Najib Mikati. The strike began on Feb. 7 in protest of a recent court ruling that forced one of the country’s largest banks to pay out two of its depositors their trapped savings …

Lebanese banks close doors to customers to protest ruling
1 year, 10 months ago

Lebanese banks close doors to customers to protest ruling

Associated Press  

BEIRUT — Lebanon’s battered commercial banks on Tuesday closed their doors to customers in protest of a recent court ruling that forced one of the country’s largest banks to pay out two of its depositors their trapped savings in cash. The Association of Banks in Lebanon, which lobbies for the banks, released a statement calling the action an “open-ended strike” …

Lebanon sets new exchange rate, dramatically devalues pound
1 year, 10 months ago

Lebanon sets new exchange rate, dramatically devalues pound

Associated Press  

BEIRUT — Three years into a crippling financial crisis, Lebanon’s Central Bank on Wednesday set a new exchange rate that effectively devalued the country’s currency by 90% but did little to bridge the gap with the soaring black market rate. However, it’s unclear how the new rate will be implemented or reconcile a host of different exchange rates that exist …

Lebanon devalues official exchange rate by 90 percent
1 year, 10 months ago

Lebanon devalues official exchange rate by 90 percent

Al Jazeera  

The central bank has confirmed the new official rate of 15,000 pounds per dollar, up from little more than 1,500. Lebanon has devalued its official exchange rate for the first time in 25 years, weakening it by 90 percent but still leaving the local currency well below its market value. The central bank confirmed the new official rate of 15,000 …

Lebanese pound hits new low as political deadlock persists
1 year, 11 months ago

Lebanese pound hits new low as political deadlock persists

Associated Press  

BEIRUT — The value of the Lebanese pound hit a new low on Thursday, trading at 50,000 to the dollar, as the country’s deeply divided Parliament failed to elect a president for the eleventh time. The pound’s plunge comes days after a European judicial delegation from France, Germany, and Luxembourg came to Beirut to interrogate embattled Central Bank governor, Riad …

Lebanese banks battered by meltdown struggle to survive
2 years ago

Lebanese banks battered by meltdown struggle to survive

Associated Press  

BEIRUT — Lebanon’s once burgeoning banking sector has been hard hit by the country’s historic economic meltdown. Most of those depositors have now lost access to their savings after the country’s lenders for years made risky investments by buying Lebanese treasury bills despite widespread corruption and overspending by the country’s political class. A proposed government economic recovery plan released in …

Lebanon bank holdups: Who is the real criminal?
2 years, 1 month ago

Lebanon bank holdups: Who is the real criminal?

Al Jazeera  

Today, Lebanon has an enormous $72bn hole in its national finances. Yet since the onset of the financial crisis, Lebanon’s banks and their supposed regulator, the Banque du Liban, have been making a bizarre ontological argument to avoid paying back their depositors and officially declaring bankruptcy. There are near-weekly bank hold-ups across Lebanon, but with a twist: People have been …

Lebanese banks to close ‘indefinitely’ as hold-ups continue
2 years, 2 months ago

Lebanese banks to close ‘indefinitely’ as hold-ups continue

Al Jazeera  

Lebanon’s banks have been in crisis for months as depositors demand access to their savings. Lebanese banks have decided to close their doors to clients indefinitely, two bankers have told Reuters, amid an unprecedented wave of hold-ups by frustrated depositors seeking access to their savings. The two sources told the news agency on Friday that banks would continue urgent operations …

Depositors storm 4 Lebanese banks, demanding their own money
2 years, 2 months ago

Depositors storm 4 Lebanese banks, demanding their own money

Associated Press  

BEIRUT — Lebanese depositors, including a retired police officer, stormed at least four banks in the cash-strapped country Tuesday after banks ended a weeklong closure and partially reopened. As the tiny Mediterranean nation’s crippling economic crisis continues to worsen, a growing number of Lebanese depositors have opted to break into banks and forcefully withdraw their trapped savings. Ali al-Sahli, a …

Depositors storm 4 Lebanese banks, demanding their own money
2 years, 2 months ago

Depositors storm 4 Lebanese banks, demanding their own money

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Lebanese depositors, including a retired …

Lebanese banks decide to stay shuttered, over security fears
2 years, 3 months ago

Lebanese banks decide to stay shuttered, over security fears

Associated Press  

BEIRUT — Lebanon’s banks will remain closed indefinitely after rejecting a proposed government security plan, a senior official with the country’s commercial banks association said on Thursday, amid a wave of protests and heists targeting its failing financial system. Lebanon’s cash-strapped banks had last closed for a prolonged period back in October 2019 for two weeks, during mass anti-government protests …

Five banks in Lebanon held up by depositors demanding access to savings
2 years, 3 months ago

Five banks in Lebanon held up by depositors demanding access to savings

CNN  

CNN — Depositors held up at least five separate banks around Lebanon on Friday in an attempt to retrieve savings frozen in the banking system, a Lebanese army official told CNN. In one of the incidents an armed man entered a bank in the south Lebanese city of Ghazieh and poured gasoline on the floor of the building, threatening to …

After heist, Lebanese activists promise more bank raids
2 years, 3 months ago

After heist, Lebanese activists promise more bank raids

Associated Press  

BEIRUT — A Lebanese activist group on Thursday vowed to organize more bank heists to help people retrieve their locked savings as the country’s years-long economic crisis continues to worsen. Activists from Depositors’ Outcry group accompanied Sali Hafez into a Beirut bank branch on Wednesday, and she was able to retrieve some $13,000 in her savings to fund her sister’s …

People are ‘robbing’ banks in Lebanon – to take their own money
2 years, 3 months ago

People are ‘robbing’ banks in Lebanon – to take their own money

Al Jazeera  

Lebanon is suffering from a worsening economic crisis since 2019, plunging three-quarters of its population below poverty. Bank heists in Lebanon have become a growing trend – but these armed “robbers” storming into banks are not stealing anyone else’s money. The local currency, the Lebanese pound, has depreciated by more than 90 percent against the United States dollar on the …

Beirut bank standoff exposes desperation of economic crisis
2 years, 4 months ago

Beirut bank standoff exposes desperation of economic crisis

Associated Press  

BEIRUT — A judge ordered a gunman who took up to 10 hostages at a Beirut bank to force the release of his trapped savings to stay behind bars Friday, apparently a bid to prevent copycats as desperation deepens over Lebanon’s economic meltdown. Because taking hostages worked to free up some of Hussein’s savings, releasing him without charges could inspire …

Lebanon’s Parliament votes to spend World Bank loan on wheat
2 years, 4 months ago

Lebanon’s Parliament votes to spend World Bank loan on wheat

Associated Press  

BEIRUT — Lebanese lawmakers on Tuesday voted to use a $150 million World Bank loan to pay for wheat imports into the cash-strapped country. Caretaker Economy Minister Amin Salam told The Associated Press in an interview in April that the World Bank loan would stabilize bread prices for at least six months, effectively buying the Lebanese authorities more time to …

Fitch Ratings warns of elections’ impact on Lebanese economy
2 years, 6 months ago

Fitch Ratings warns of elections’ impact on Lebanese economy

Associated Press  

BEIRUT — A leading international credit ratings agency warned Friday that the results of this month’s parliamentary elections in Lebanon make it difficult for any coalition to have a governing majority, potentially complicating implementation of reforms. Riad Salameh’s announcement appears to be another attempt to temporarily ease markets amid chaos related to the sharp drop of the pound, which has …

Value of Lebanese pound drops to all-time low
2 years, 6 months ago

Value of Lebanese pound drops to all-time low

Al Jazeera  

The black market rate, widely used across the country, now sits at 35,600 to the US dollar. Beirut, Lebanon – The black market value of the Lebanese pound has fallen to an all-time low of 35,600 against the US dollar, a drop from 26,800 in the space of just two weeks, and a sign that Lebanon’s economic crisis is set …

Lebanon currency hits new low after vote, crisis deepens
2 years, 7 months ago

Lebanon currency hits new low after vote, crisis deepens

Associated Press  

BEIRUT — Lebanon’s currency hit a new low Tuesday as deep divisions within the newly elected parliament raised concerns that political paralysis could further exacerbate one of the worst economic meltdowns in history. This sets up a potential clash in parliament between the two camps, raising concerns of a protracted deadlock to form a new Cabinet desperately needed to resume …

Lebanon central banker probed in money laundering investigation
2 years, 8 months ago

Lebanon central banker probed in money laundering investigation

Al Jazeera  

The investigation revolves around money laundering and embezzling public funds in Lebanon between 2002 and 2021. Lebanon’s central bank head is one of the targets in a joint money-laundering probe spearheaded by three European countries over the alleged embezzlement of more than $330 million. Authorities in France, Germany and Luxembourg froze assets worth a total of 120 million euros on …

Lebanese judge charges central bank chief with corruption
2 years, 9 months ago

Lebanese judge charges central bank chief with corruption

Al Jazeera  

Investigative judge Ghada Aoun charges three-decade bank chief Riad Salameh, as well as his brother, with crimes. Lebanon’s central bank governor Riad Salameh has been charged with illegal enrichment and money laundering during Lebanon’s economic meltdown. Ghada Aoun, an investigative judge at Mount Lebanon district court, said on Monday that she had charged Governor Riad Salameh, along with his brother, …

Lebanese government approves budget amid economic meltdown
2 years, 10 months ago

Lebanese government approves budget amid economic meltdown

Associated Press  

BEIRUT — Lebanon’s government approved Thursday the state budget for the current year, with a 17% deficit, the prime minister said. Prime Minister Najib Mikati told reporters after a Cabinet meeting Thursday that the budget projects spending of 47 trillion Lebanese pounds, while revenues stand at 39 trillion pounds, with a deficit of about 17%. In what appears to be …

Lebanon’s crippled economy hobbles into new year
2 years, 11 months ago

Lebanon’s crippled economy hobbles into new year

Al Jazeera  

With elections scheduled for May, few see meaningful solutions on the horizon to halt the Lebanese pound’s downward spiral. So when Lebanon’s central bank issued a directive last month more than doubling the exchange rate for Lebanese pound withdrawals on dollar deposits, chaos ensued. Sick for years The December central bank directive boosted the exchange rate on Lebanese pound withdrawals …

Lebanon’s currency continues to tank amid monetary chaos
3 years ago

Lebanon’s currency continues to tank amid monetary chaos

Associated Press  

BEIRUT — Lebanon’s national currency further collapsed Monday, trading on the black market at nearly 20 times its value two years ago, worsening inflation and people’s despair. The Lebanese pound was trading at 27,000 to the dollar on the black market, hitting a new low in its downward trajectory since October 2019 as the Lebanese economy went into a tailspin. …

UN rep slams Lebanon central bank chief over economic crisis
3 years, 1 month ago

UN rep slams Lebanon central bank chief over economic crisis

Al Jazeera  

A UN expert blasted the country’s banking sector for failing to recognize its role in the country’s crippling economic crisis. Beirut, Lebanon – United Nations Special Rapporteur on extreme poverty and human rights Olivier De Schutter on Friday blasted Lebanese Central Bank Governor Riad Salameh for not recognizing the bank’s role in the country’s crippling economic crisis. The Central Bank …

Lebanon’s incoming government restarts central bank audit
3 years, 3 months ago

Lebanon’s incoming government restarts central bank audit

Associated Press  

BEIRUT — Lebanon’s incoming finance minister signed a contract on Friday with a New York-based company to conduct a forensic audit of the country’s central bank, a key demand of the international community to restore confidence in the crisis-struck Mideast nation. A forensic audit of the Lebanese central bank has been a key demand by the IMF and international donors …

Here is why the EU should sanction Lebanon’s bankers
3 years, 4 months ago

Here is why the EU should sanction Lebanon’s bankers

Al Jazeera  

The banking sector is responsible for the current crisis in Lebanon. At present, the proposed EU sanctions target Lebanon’s political leaders, many of whom do not necessarily meet those criteria or who have demonstrated that they are unwilling to challenge the BDL or the banking sector, not least because of current or previous business ties to the industry. Smarter sanctions …

Mired in pandemic-induced crises, Lebanon hopes for economic revival and relief with the arrival of summer
3 years, 5 months ago

Mired in pandemic-induced crises, Lebanon hopes for economic revival and relief with the arrival of summer

Firstpost  

For weeks, frustrated citizens have been lining up to fill up at gas stations, with occasional fistfights and shootings amid frayed nerves. There’s … more interest from the Lebanese to travel inside their country,” said Joumana Brihi, board member of the Lebanese Mountain Trail Association. Last year, Member of Parliament Michel Daher was chastised on social media for saying on …

France opens graft probe into Lebanon’s central bank chief
3 years, 6 months ago

France opens graft probe into Lebanon’s central bank chief

Al Jazeera  

French prosecutors opened a preliminary investigation into money laundering allegations against Lebanon’s longtime central bank chief Riad Salameh, who is also accused of associating with an organised criminal group. French prosecutors have opened a preliminary investigation into money laundering allegations against Lebanon’s central bank governor, the prosecutor’s office said on Monday. The move comes on the heels of Switzerland launching …

Lebanon reverses bank decision that caused depositors panic
3 years, 6 months ago

Lebanon reverses bank decision that caused depositors panic

Associated Press  

BEIRUT — After public outrage and protests, Lebanon’s Central Bank governor said Thursday that depositors can go back to withdrawing money from their dollar deposits in the local currency at a rate two and half times better than the official one. The decision reverses an earlier one and comes a day after panicked depositors lined up outside cash machines to …

Lebanon’s central bank U-turns after dollar withdrawal backlash
3 years, 6 months ago

Lebanon’s central bank U-turns after dollar withdrawal backlash

Al Jazeera  

Lebanon’s central bank chief on Thursday sought to reassure depositors that their money was safe and would be returned after reversing a Wednesday decision to stop dollar withdrawals. The governor of Lebanon’s central bank reassured depositors on Thursday that it was not bankrupt and that people’s deposits were safe and would be returned soon, after reversing a decision to stop …

Lebanese leaders exchange barbs as country sinks into crisis
3 years, 6 months ago

Lebanese leaders exchange barbs as country sinks into crisis

Associated Press  

BEIRUT — Lebanon’s president and prime minister-designate traded barbs Wednesday, accusing one another of obstruction, negligence and insolence in a war or words that has for months obstructed the formation of a new government as the country sinks deeper into economic and financial crisis. The power struggle between the premier-designate, Saad Hariri, on one side and President Michel Aoun and …

World Bank: Lebanon’s crisis among world’s worst since 1850s
3 years, 6 months ago

World Bank: Lebanon’s crisis among world’s worst since 1850s

Associated Press  

BEIRUT — Lebanon’s severe economic and financial crisis is likely to rank as one of the worst the world has seen in more than 150 years, the World Bank said in a report released Tuesday. The World Bank said that since late 2019, Lebanon has been facing compounded challenges, including its largest peace-time economic and financial crisis, the spread of …

Lebanon crisis could rank among world’s three worst in 150 years
3 years, 6 months ago

Lebanon crisis could rank among world’s three worst in 150 years

Al Jazeera  

The World Bank said on Tuesday that Lebanon’s economic and financial crisis could rank as one of the three most severe the world has seen since the mid-19th century. Lebanon’s financial and economic crisis could rank as one of the world’s three most severe since the mid-19th century, concludes the latest Lebanon Economic Monitor released by the World Bank on …

‘We’re sick of them’: Lebanon economy freefalls as leaders bicker
3 years, 9 months ago

‘We’re sick of them’: Lebanon economy freefalls as leaders bicker

Al Jazeera  

Beirut, Lebanon – Lebanon’s politicians continue to bicker about forming a new government while the economic crisis engulfing the country continues to foment public outrage. “It is not the prime minister-elect’s job to sign papers, and it is not the president’s job to form a government.” Aoun later issued a statement condemning Hariri for sharing with the press his proposed …

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