Lebanese banks start strike to press measures to tackle financial crisis

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Long lines form early on July 27, 2022 outside a bakery in north Lebanon's port city of Tripoli where people sometimes have to wait for hours for a bag of subsidised Arabic pitta bread - in short supply as a years-long economic crisis depletes state coffers. (AFP)
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  • Lebanese Banks Association is demanding a capital control law that would enshrine informal restrictions on withdrawals in hard currency and Lebanese pounds
  • The Lebanese liquidity crisis first imploded in August 2019, and was further aggravated by both the COVID-19 pandemic in Lebanon and the 2020 Beirut port explosion

Beirut, Lebanon – Banks in Lebanon are beginning an open-ended strike from Tuesday but will keep ATMs operating for basic services, according to the Lebanese Banks Association.

The association has pressed the authorities to pass overdue measures to deal with the ongoing financial crisis.

The decision to go for strike followed a meeting by the association to discuss judicial measures against banks in the wake of the crisis. The meeting deliberated the impact of these measures “on banking workflow and the rights of depositors.”

The association is  demanding a capital control law that would enshrine informal restrictions on withdrawals in hard currency and Lebanese pounds, as well as legislation to restructure the country’s troubled banks.

The Lebanese liquidity crisis first imploded in August 2019, and was further aggravated by both the COVID-19 pandemic in Lebanon and the 2020 Beirut port explosion. 

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