Lebanon's Finance Minister to Asharq Al-Awsat: Depositors' Funds to Be Recovered in Three Phases
Yassin Jaber, Lebanon's Finance Minister and head of the Lebanese delegation to the IMF and World Bank Spring Meetings in Washington, said that the recovery of depositors' funds in Lebanese banks will take place in three consecutive phases.
Acknowledging US pressure to shut down the Al-Qard Al-Hassan Association affiliated with Hezbollah, Jaber emphasized the need for a defensive policy aimed at disarming militias. He also spoke of Lebanon's 'natural' return to the 'Arab embrace,' describing relations with Arab states — particularly Saudi Arabia — as 'excellent.
In an interview with Asharq Al-Awsat, Jaber described his meetings on the sidelines of the IMF and World Bank gatherings as 'generally positive,' stressing the importance of the visit in helping to bridge the trust gap that had widened over the years between Lebanon and the international community, as well as with its Arab allies.
He noted that the meetings with IMF representatives included the presentation of 'essential reforms' approved by the Lebanese government, emphasizing that these reforms were not being implemented to appease external parties but were necessary steps for the benefit of Lebanon itself and its people.
The minister explained that reforms in sectors like electricity are aimed at providing better services to Lebanese citizens, enabling them to pay lower bills and receive uninterrupted electricity supply, rather than relying on costly private generators.
Jaber considered the recent parliamentary vote to amend banking secrecy laws — passed by a majority of 87 votes — a clear vote of confidence in the government's reform efforts. He also mentioned a new draft law for restructuring the banking sector, which has been referred to the parliamentary Finance Committee for expedited review before being presented to the general assembly.
Regarding the recovery of depositors' funds, Jaber stressed that Lebanon's current priorities are broad and simultaneous, encompassing agreements with the IMF and World Bank, addressing the issue of unpaid sovereign debt, banking sector reform, and returning funds to depositors.
He revealed that Lebanon's new Central Bank Governor, Karim Saeed, is preparing a comprehensive plan to restructure banks and return depositors' funds.
'No banking system worldwide can return all depositors' money at once. Recovery will occur in phases, beginning with middle-income depositors — those with balances of $100,000 or less — who represent 84 percent of all depositors,' Jaber said, adding that larger deposits will be addressed subsequently, with amounts up to $500,000 or even $1 million, before moving to higher brackets. Although the plan will be presented in full, the payouts will be made gradually over time, he noted.
The Lebanese minister underlined the critical need for a functioning banking sector that is adequately capitalized and compliant with international standards. He explained that if certain banks fail to meet these requirements, they may be merged, either individually or through the consolidation of two or three banks to achieve stability. Jaber also warned that Lebanon's inclusion on the Financial Action Task Force (FATF) gray list resulted from the country's reliance on cash transactions, and that restoring trust in the banking sector and reducing cash-based activity are essential for Lebanon's removal from the list.
In addressing the US call to shut down Al-Qard Al-Hassan, Jaber said the matter falls within the jurisdiction of the Central Bank Governor and not the Finance Ministry, noting that the authorities will observe developments closely.
Touching on Lebanon's gold reserves, he said: 'These assets bolster confidence in the Central Bank's holdings and its future credibility.'
He lamented past policy errors under former Governor Riad Salameh, which, he said, will now be avoided. He also categorically ruled out any move to liquidate the gold reserves, explaining that such a decision is not within the authority of the Central Bank Governor, the finance minister, or even the government.
'Any move to sell gold would require a parliamentary decision, and at present, this issue is not under discussion,' the minister told Asharq Al-Awsat.
On the sensitive issue of Hezbollah's arms, Jaber explained that the Lebanese Army is deployed in the South and is rigorously implementing United Nations Resolution 1701. He emphasized the importance of empowering the army with sufficient resources and proper organization to fulfill its duties.
'President Joseph Aoun, who handles this file with deep understanding gained from his years as an army commander, is managing the matter wisely,' he said. While there remains pressure, logistical and manpower challenges continue to hinder full deployment, with efforts underway to recruit thousands of additional troops, according to the minister.
Jaber noted that all political parties, including Hezbollah, have expressed respect for the army and a willingness to cooperate with it. He stressed that the President remains committed to developing a national defense strategy and will soon convene dialogue sessions to move this process forward, urging patience and time for these initiatives to materialize.
Turning to Lebanon's relations with Saudi Arabia and the broader Arab world, Jaber stated: 'It is natural for Lebanon to belong within the Arab fold,' citing the historic ties and the presence of hundreds of thousands of Lebanese expatriates in Saudi Arabia, the UAE, Kuwait, Qatar, and Iraq. He described the current relationships as 'extremely positive,' saying: 'Our hand is extended, and we are making every effort to maintain the best possible relations with our Arab brothers.'
He further praised Arab countries as Lebanon's 'big brothers,' expressing gratitude for their continued concern and support for Lebanon's stability and prosperity. Jaber emphasized that no other country could have withstood the sequence of crises Lebanon has faced — including the 2019 financial collapse, the 2020 Beirut port explosion, the COVID-19 pandemic, a prolonged presidential vacuum, a paralyzed government, a suspended Parliament, and over a year of conflict.
The minister reminded Arab nations that Lebanon continues to host two million Syrian refugees, drawing a comparison by suggesting that if the United States hosted 120 million Mexicans for two years, it too would be overwhelmed. He concluded by calling on Lebanon's Arab and international allies to stand by the country as it strives to implement genuine, structural reforms across all sectors.
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