"After six years of one of the world's worst financial crises, Lebanon's cabinet has approved a draft law that could give depositors back their money. In 2019, the Lebanese currency began spiralling. Banks locked their doors and prevented depositors from accessing their money. list of 3 itemsend of list Some depositors were forced to hold up bank branches to get their own money. By the time the currency had been regulated, the Lebanese Lira had lost 98 percent of its value."
"Depositors will be getting some of their money back. Under the law, anyone who deposited up to $100,000 will be reimbursed within four years. This is an improvement on past proposals, where the same amount would be repaid over more than a decade. However, observers noted that plans proposed in 2020, under the government of former Prime Minister Hassan Diab, had depositors receiving up to $500,000 back."
"A forensic audit means [the banks] will open all their operations their dividends and the bonuses they paid executives basically all the financial engineering they've done, Debs said. He added that an audit is important because there are a lot of discrepancies between what they say and what the state is saying. What's bad about it? Plenty. First off, the $100,000 figure is per depositor and not per account."
Lebanon approved a draft gap law aimed at returning some deposits after a six-year financial collapse that began in 2019 when the currency spiralled and banks blocked withdrawals. The law proposes reimbursing anyone who deposited up to $100,000 within four years, a faster timetable than earlier plans. Previous proposals in 2020 had envisioned reimbursements up to $500,000. The measure includes a promised forensic audit to examine banks' operations, dividends, executive bonuses and financial engineering. Critics note the $100,000 ceiling applies per depositor, not per account, leaving many depositors with large balances only partially repaid.
Read at www.aljazeera.com
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