Archive · 27 Dec 2025
Lebanon Approves Draft Law to Restore Bank Funds
Lebanon's government has approved a new law to help people get back the money they lost when the banks collapsed in 2019.
This collapse was part of a bigger financial crisis caused by years of bad management and corruption.
The law says that most people (85%) who had smaller amounts of money in the bank will get all their money back over four years.
People with larger amounts will get some money back in cash and the rest in special bonds.
The government says these bonds are valuable and will be backed by the central bank's assets.
The International Monetary Fund (IMF) has been pushing for such a law for a long time.
The Lebanese currency has lost most of its value, and many people are poor.
The situation got worse because of a war with Israel.
The cost to fix the damage from the war is about USD 11 billion.
Lebanon's Cabinet approved a draft law to return depositors' funds lost in the 2019 financial collapse.
The law aims to return full deposits to smaller depositors (85%) over four years and gradually to larger depositors.
Larger deposits will be converted into tradable bonds backed by the Central Bank's USD 50 billion assets.
The law aligns with IMF's measures for financial sector restructuring and improving transparency.
The Lebanese currency has lost over 90% of its value, and the population has been severely impacted by poverty and war.
- Who
- Lebanon's Cabinet, depositors, Prime Minister Nawaf Salam, International Monetary Fund (IMF)
- What
- Approval of a draft law to return funds lost in the 2019 financial collapse.
- When
- December 26, 2023
- Where
- Beirut, Lebanon
- Why
- To address the financial meltdown and return depositors' funds.
- Draft Law Approval
- Lebanon's Cabinet approved a draft law to return depositors' funds lost in the 2019 financial collapse.
- Votes
- 13 ministers voted in favor, 9 against.
- Depositor Recovery
- Smaller depositors (85%) to receive full deposits over four years; larger depositors to recover funds gradually.
- Central Bank Assets
- Remaining large deposits converted into tradable bonds backed by Central Bank's USD 50 billion assets.
- IMF Involvement
- Law aligns with IMF's long-sought measures for financial sector restructuring.
- Currency Devaluation
- Lebanese currency lost over 90% of its value against the dollar.
- War Impact
- Israel-Hezbollah war compounded financial woes; reconstruction cost estimated at USD 11 billion.