Lebanon's $250 million war debris loan delayed pending Council for Development and Reconstruction appointments, sources tell LBCI
The Lebanese delegation is expected to present these appointments at the International Monetary Fund (IMF) and World Bank meetings in Washington on April 21.
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L'Orient-Le Jour
3 days ago
- L'Orient-Le Jour
Aoun: Lebanon is not 'bankrupt,' but a 'stolen' country
President Joseph Aoun said on Thursday at Baabda Palace that "Lebanon is not bankrupt, but stolen," adding that "no country in the world goes bankrupt if it is properly managed. We have had governments that have mismanaged resources." The president was speaking before a delegation from the Lebanese Business Council in Abu Dhabi who had come to meet him at Baabda, on a day when he also presided over a judicial meeting with Justice Minister Adel Nassar and judges Souheil Abboud and Jamal Hajjar, and spoke with Finance Minister Yassine Jaber and the governor of the Central Bank (BDL), Karim Souhaid. Before the business council delegation, Aoun said that "our problem largely lies in corruption, as there has been no accountability. Today, justice is present, the files are open, and there are no bans or red lines. This is how things return to normal and confidence is restored between the state and the people, as well as between Lebanon and foreign countries." Since his election last January, the president has shown a willingness to break the deadlock on the important reform projects the country must launch to rebuild its shattered economy and financial system. 'The Lebanese imprint' Aoun also praised the role of the Lebanese diaspora around the world, which "has been the country's main support over the years." According to him, "the strength and wealth of Lebanon reside here: there is not a single major project, from Brazil to Australia via Africa, without a Lebanese imprint." His comments come at a time when many members of the diaspora no longer have access to their funds and savings, which have been illegally blocked in Lebanese banks since the start of the economic crisis in 2019. The real wealth of Lebanon does not lie in its "natural resources," but in "investment in its talents, skills, and human capital," he added, inviting the business council delegation to put their expertise at the country's service and to invest in it. 'Lebanon needs true justice' Aoun, the former commander of the army, also presided over a judicial meeting attended by Nassar, the president of the Supreme Judicial Council (CSM), Souheil Abboud, the public prosecutor at the Court of Cassation, Jamal Hajjar, as well as the new prosecutors appointed as part of the transfers and appointments. "You bear the responsibility to deliver justice and apply the law to all citizens, without distinction or exception. Never deviate from the truth, whatever the circumstances or pressures," he said. And he added: "The law stands above everyone, and its application must be just and fair for each person, from the highest official to the simplest citizen. Stay close to the people and their concerns, and work to restore citizens' confidence in justice through honest and transparent efforts. Lebanon urgently needs true justice, capable of rebuilding trust in institutions and protecting human dignity." Aoun also met with the finance minister and the governor of the BDL about "the country's financial situation."
L'Orient-Le Jour
3 days ago
- L'Orient-Le Jour
Lebanese financial prosecutor orders repatriation of funds transferred abroad during crisis
BEIRUT — Financial Prosecutor Judge Maher Chaito has issued a landmark decision, 'based on ongoing investigations,' requiring both individuals and legal entities – including bankers — to repatriate to Lebanese banks sums equivalent to amounts they transferred abroad during the economic crisis — or after Oct. 17, 2019, and 'in the same currency,' Lebanon's National News Agency (NNA) reported Thursday. Funds are to be reintroduced into the Lebanese banking system 'within two months,' and 'under the supervision of the Financial Prosecutor's Office and in accordance with the conditions it sets,' it further said. Since the crisis erupted in 2019, political deadlock has prevented the passage of formal capital control legislation – a key condition set by the International Monetary Fund (IMF) to unlock a rescue package. In the meantime, billions of dollars are estimated to have been moved abroad between 2020 and 2023, although no precise figures exist, while the bulk of depositors' funds remain unlawfully trapped in Lebanese banks. List of individuals concerned to be identified by the BCC Appointed as financial prosecutor last month, "Judge Chaito was asked to pick up two pending cases – including fund transfers files, which had been initiated by predecessor judge Ali Ibrahim, before being shelved,' a source familiar with the matter, speaking on condition of anonymity, told L'Orient Today. 'Many details of the decision have yet to be published and clarified,' the source noted. As a first step, the types of transfers to be targeted must be identified, and clear scenarios and thresholds established to determine what qualifies for repatriation, he explained. 'For example, medical transfers and tuition payments are expected to be exempt.' Once these parameters are set, the BDL's Banking Control Commission (BCC) must, using the information provided by Lebanese banks, draw up a list of account holders whose transfers meet the criteria set by the financial prosecutor. With the banking secrecy law lifted in April 2025, 'the BCC now has the authority, with judicial authorization, to obtain such lists and forward them to the prosecutor for enforcement,' the source said. Meanwhile, the Special Investigation Commission, which handles money laundering and related cases, can work in parallel to flag transfers that are deemed 'suspicious.' Individuals may also be identified through other ongoing proceedings, which could stem from 'judges already handling certain cases, whistleblower reports, referrals from the National Anti-Corruption Commission, or from the Special Investigation Commission (SIC) or BDL's Central Council,' tax lawyer Karim Daher told L'Orient Today. These cases, he explained, relate specifically to individuals who transferred funds abroad after Oct. 17, 2019, in violation of the law — and are pursued under the legal framework in place as of that date. 'For public officials, it would fall under laws on illicit enrichment or embezzlement of public funds. For bankers, it would be prosecuted under existing statutes on bankruptcy, fraudulent bankruptcy, or bankruptcy by default, insider dealing, as well as breach of trust against depositors,' Daher said. In such instances, bankers, directors, and board members — fully aware that their institutions were insolvent — refrained from paying depositors while transferring their own money abroad. 'These were not bank assets, but personal funds moved out of the country to the detriment of others,' he continued. Under the relevant laws, they are being ordered to repatriate these sums into the Lebanese banking system, where they will be treated like the funds of other depositors and become subject to the same withdrawal restrictions. If individuals fail to comply, sanctions — still to be determined — will need to be applied. 'If they don't, the financial prosecutor can recover the funds forcibly under the applicable laws: the anti-money laundering law, the U.N. Convention against Corruption (Chapter 5 on asset recovery), and Law 214/2021 on the recovery of illicit assets,' Daher added. A boost towards depositors' fund recovery Once returned, funds will be differentiated between those deemed "eligible" and 'ineligible' through the law aimed at restoring financial balance and returning deposits (formerly called the gap resolution law), which the government is still working on. If the funds are found to stem from acts of corruption, Daher says, 'they will be seized and transferred to the state under Lebanese law and the Penal Code, or Law 44/2015. 'Illicitly acquired' can mean money laundering, embezzlement of public funds, or other forms of illicit gain.' Returning funds to the banking system would likely reduce the estimated $80 billion financial gap, while also improving bank liquidity and expanding the pool of resources available for depositor repayment, the source noted. In August 2020, former disgraced central bank governor Riad Salameh issued Circular No. 154, instructing banks to pressure clients who had transferred more than $500,000 (or the equivalent in other currencies) abroad after July 2017 to return 15 percent of the transferred amounts and place them in a 'special account' frozen for five years. The required ratio increased to 30% for bank board members, major shareholders, or any 'politically exposed persons' holding senior executive, legislative, or administrative positions within the state. Many provisions of the circular were never implemented, and it carried no legal force, making it effectively unenforceable.
Ya Libnan
3 days ago
- Ya Libnan
Lebanon MP backs Financial Prosecutor's plan to return depositors' funds
MP Farid Al-Bustani said that 'the decision of Financial Prosecutor Maher Shaito is sound and a first step towards rebuilding deposits and thus returning depositors' funds. It constitutes a fundamental clause in the law I submitted to Parliament.' The National News Agency reported that Financial Prosecutor Maher Shaito issued a decision, 'based on current investigations, instructing natural and legal persons, including bankers, to deposit in Lebanese banks amounts equal to the amounts they transferred abroad during the banking and financial crisis that the country experienced, and in the same currency. The goal is to reintroduce these amounts into the Lebanese banking system within a period of two months, under the supervision of the Financial Public Prosecution and in accordance with the conditions it sets.' Source: Elnashra
