The possibility of Lebanese depositors soon gaining access up to $93 billion stuck in the country's banks is slim to none, financial analysts say, despite assurances from the Lebanese economy minister.
“The return of depositors’ funds will be extremely complicated and politically charged,” Walid Abousleiman, co-founder of Cyprus-based financial services company Aksys Global Markets, told The National.
“Despite repeated promises, there’s no credible or comprehensive financial recovery plan in place, especially one backed by solid legislation and international support. Without such a plan, I don’t see a full return of deposits happening anytime soon.”
On Monday, Economy Minister Amer Bisat said depositors will receive their funds "over time" as part of an overhaul of the Lebanese financial system. The state, central bank and lenders in the country will share the burden of repairing the crisis-stricken economy, he told Bloomberg TV in an interview.
“Depositor protection is an extremely important part of the objectives that we have in place. That may require instruments, that may require delays, or some time passage in order to pay, but the idea is that nobody would lose their deposits. But it may take time,” said Mr Bisat.
Customers have been waiting to access their life savings stuck in banks for the past six years, as the country endures a severe financial crisis.
Lebanese banks imposed arbitrary restrictions on their clients in 2019 after the state failed to honour its bond commitments and the economy went into a tailspin. The Covid-19 pandemic exacerbated the economic crisis to historic proportions.
Withdrawal limits
The economic collapse was blamed on decades of financial mismanagement and corruption by Lebanon's ruling elite. Former central bank governor Riad Salameh has also been accused of helping to embezzle hundreds of millions of dollars from the central bank.
Currently, there are strict withdrawal limits and most customers can only access up to $500 a month. The limit is at $250 a month for certain newer accounts. Annual withdrawal ceilings range from $5,100 to $6,800, depending on when the account was enrolled.
Lump-sum withdrawals of full balances are not permitted, and exceeding the monthly or annual limit can result in suspension of withdrawal rights altogether.
Political will
Analysts say a transparent restructuring of the banking sector, as well as a clear assessment of losses and international assistance, is required before a phased repayment for depositors can begin.
The political will to resolve the crisis and the injection of capital into the banking system, with the support of international creditors, is a must for the process to even begin, they added.
In April 2022, Lebanon reached a staff-level agreement with the International Monetary Fund on a comprehensive economic reform programme supported by a 46-month extended fund facility, proposing access to about $3 billion. However, Lebanese authorities have been accused of dragging their feet on the required reforms.
"There is no resolution of frozen access to customer deposits without a major injection of capital into the banking system and that goes back to the government's ability to persuade international creditors that it is prepared to commit to and implementing long-delayed necessary structural and, for some, painful economic and governance reform,” said Hasnain Malik, head of emerging and frontier markets equity strategy at Tellimer.
“What will never be made is the loss of livelihoods and wealth for depositors who have been without access for years and will never be able to dollarise their deposits at the currency exchange rate before they lost access."
Lebanon's currency has lost more than 90 per cent of its value since the financial crisis began in 2019, hitting the economy hard.
Value of deposits
The total value of frozen depositors’ funds in Lebanese banks as of early 2025 is estimated between $86 billion to $93 billion, spread across approximately 1.26 million accounts, according to Hassan Fawaz, chairman and founder of the international brokerage house of GivTrade.
Most small accounts have already been partially settled, with the remaining frozen funds largely held in medium and large accounts.
“The financial gap between what banks owe and their available assets is around $80 billion, making the full return of deposits a major challenge and dependent on comprehensive financial and political reforms, he said.
The government appears to be taking concrete steps towards reform, including passing banking secrecy amendments and a banking restructuring law but the "implementation of these reforms, the burden-sharing negotiations among stakeholders, and the actual mechanisms for returning deposits will likely require years of sustained effort", he added.
Real action
Meanwhile, customers whose money remains stuck in banks are demanding "real action" from the country's new leadership to ensure the return of their hard-earned savings.
“We hope to get our money back, but I think by the time that happens, it will have lost most of its value – it already has,” said Arze Chalfoun, 55, owner of a photography studio. “What really matters now is restoring trust in the banking system. We have faith in the new leadership, but we need to see real action.”
The election this year of Joseph Aoun as president and the appointment of Nawaf Salam as prime minister were widely seen as a turning point after years of political paralysis.
Their rise to power revived hopes for long-overdue institutional and economic overhaul. Lebanon’s new leadership has pledged to tackle the country’s deep-rooted financial collapse, which was compounded by a year-long war between Israel and the Lebanese armed group Hezbollah.
Banking system restructuring
A cornerstone of the government’s recovery plan is the restructuring of the banking sector – a key requirement set by the IMF for unlocking billions in financial assistance. The appointment of a new central bank governor in March has further signalled a commitment to rebuilding monetary credibility, amid urgent calls to stabilise the currency and address depositors’ frozen funds.
While international donors have expressed cautious encouragement, much hinges on the government's ability to translate promises into tangible steps and restore public trust in state institutions.
"Years of mismanagement and corruption led us to where we are today – we need to address the root causes before people can expect to get their funds back,” Elie Fayad, a 32-year-old Lebanese banker told The National. “Reforms must be implemented, starting with passing the bank secrecy law.”
Last week, the Lebanese government approved a draft law to reform and restructure the country’s banking sector, marking a significant step towards addressing the financial crisis. Lebanon’s Finance Minister Yassine Jaber said that he expects banking secrecy law to be passed in parliament within days. Some Lebanese officials have accused former Central Bank Governor Salameh of using bank secrecy laws to justify withholding information.
The legislative push came shortly after a visit by the US deputy special envoy to the Middle East, Morgan Ortagus, who stressed the urgent need for Lebanon to pass key financial laws to restore confidence in the banking sector and curb illicit financial flows.
Lebanese ministers, along with the new central bank chief, are expected to attend the IMF and World Bank spring meetings in Washington next week.
Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
Key products and UAE prices
iPhone XS
With a 5.8-inch screen, it will be an advance version of the iPhone X. It will be dual sim and comes with better battery life, a faster processor and better camera. A new gold colour will be available.
Price: Dh4,229
iPhone XS Max
It is expected to be a grander version of the iPhone X with a 6.5-inch screen; an inch bigger than the screen of the iPhone 8 Plus.
Price: Dh4,649
iPhone XR
A low-cost version of the iPhone X with a 6.1-inch screen, it is expected to attract mass attention. According to industry experts, it is likely to have aluminium edges instead of stainless steel.
Price: Dh3,179
Apple Watch Series 4
More comprehensive health device with edge-to-edge displays that are more than 30 per cent bigger than displays on current models.
INFO
What: DP World Tour Championship
When: November 21-24
Where: Jumeirah Golf Estates, Dubai
Tickets: www.ticketmaster.ae.
Wayne Rooney's career
Everton (2002-2004)
- Appearances: 48
- Goals: 17
Manchester United (2004-2017)
- Appearances: 496
- Goals: 253
England (2003-)
- Appearances: 119
- Goals: 53
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
THREE
%3Cp%3EDirector%3A%20Nayla%20Al%20Khaja%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Jefferson%20Hall%2C%20Faten%20Ahmed%2C%20Noura%20Alabed%2C%20Saud%20Alzarooni%3C%2Fp%3E%0A%3Cp%3ERating%3A%203.5%2F5%3C%2Fp%3E%0A
What is an FTO Designation?
FTO designations impose immigration restrictions on members of the organisation simply by virtue of their membership and triggers a criminal prohibition on knowingly providing material support or resources to the designated organisation as well as asset freezes.
It is a crime for a person in the United States or subject to the jurisdiction of the United States to knowingly provide “material support or resources” to or receive military-type training from or on behalf of a designated FTO.
Representatives and members of a designated FTO, if they are aliens, are inadmissible to and, in certain circumstances removable from, the United States.
Except as authorised by the Secretary of the Treasury, any US financial institution that becomes aware that it has possession of or control over funds in which an FTO or its agent has an interest must retain possession of or control over the funds and report the funds to the Treasury Department.
Source: US Department of State
MATCH INFO
What: India v Afghanistan, first Test
When: Starts Thursday
Where: M Chinnaswamy Stadium, Bengalaru
Who is Allegra Stratton?
- Previously worked at The Guardian, BBC’s Newsnight programme and ITV News
- Took up a public relations role for Chancellor Rishi Sunak in April 2020
- In October 2020 she was hired to lead No 10’s planned daily televised press briefings
- The idea was later scrapped and she was appointed spokeswoman for Cop26
- Ms Stratton, 41, is married to James Forsyth, the political editor of The Spectator
- She has strong connections to the Conservative establishment
- Mr Sunak served as best man at her 2011 wedding to Mr Forsyth
UAE currency: the story behind the money in your pockets
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Company%20Profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Hoopla%3Cbr%3E%3Cstrong%3EDate%20started%3A%20%3C%2Fstrong%3EMarch%202023%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Jacqueline%20Perrottet%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%3C%2Fstrong%3E%2010%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3EPre-seed%3Cbr%3E%3Cstrong%3EInvestment%20required%3A%3C%2Fstrong%3E%20%24500%2C000%3C%2Fp%3E%0A
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Killing of Qassem Suleimani
KEY HIGHLIGHTS
Healthcare spending to double to $2.2 trillion rupees
Launched a 641billion-rupee federal health scheme
Allotted 200 billion rupees for the recapitalisation of state-run banks
Around 1.75 trillion rupees allotted for privatisation and stake sales in state-owned assets
TOURNAMENT INFO
Fixtures
Sunday January 5 - Oman v UAE
Monday January 6 - UAE v Namibia
Wednesday January 8 - Oman v Namibia
Thursday January 9 - Oman v UAE
Saturday January 11 - UAE v Namibia
Sunday January 12 – Oman v Namibia
UAE squad
Ahmed Raza (captain), Rohan Mustafa, Mohammed Usman, CP Rizwan, Waheed Ahmed, Zawar Farid, Darius D’Silva, Karthik Meiyappan, Jonathan Figy, Vriitya Aravind, Zahoor Khan, Junaid Siddique, Basil Hameed, Chirag Suri
