Tue Dec 30 13:02:51 UTC 2025: Summary:

After six years of financial crisis in Lebanon, the cabinet has approved a draft “gap law” aimed at reimbursing depositors who had their access to funds restricted in 2019 when the Lebanese currency plummeted. The law proposes to repay up to $100,000 to depositors within four years, although previous proposals were more generous. A financial audit is also planned to investigate the banks’ operations during the crisis. Concerns remain about the fairness of the law, as banks are only responsible for a portion of the payouts, while the state bears most of the burden. The remaining money owed to depositors will be paid through bonds backed by the state’s assets. Critics argue that this could lead to vulture funds benefiting at the expense of the Lebanese population.

News Article:

Lebanon Approves Draft Law to Reimburse Depositors After Years of Financial Crisis

Beirut, Lebanon – After six years of economic turmoil that left Lebanese citizens locked out of their bank accounts, the Lebanese cabinet has approved a draft law aimed at returning funds to depositors. Dubbed the “gap law,” it seeks to address the financial crisis that began in 2019, which led to the Lebanese Lira losing 98% of its value and banks restricting access to depositors’ money.

The approved draft law proposes that depositors with up to $100,000 in their accounts will be reimbursed within four years. However, concerns remain about the fairness of the plan, with critics pointing out that previous proposals offered more generous terms. A full financial audit of the banks’ operations during the crisis is also planned.

Under the draft law, banks are only responsible for covering 40% of the withdrawals, while the state will bear the majority of the financial burden, with an estimated $70bn gap. The remaining debt will be reimbursed through bonds backed by state assets, including Lebanon’s gold reserves. Critics argue that this could lead to foreign entities benefiting at the expense of the Lebanese population.

The International Monetary Fund (IMF) has also expressed concerns, questioning why depositors should bear the cost before the banks. The draft law still needs to pass through Parliament.

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