Archive · 23 Dec 2025
Lebanese PM Urges Swift Approval of Depositor Repayment Law
The Lebanese Prime Minister wants the government to quickly approve a new law to help people who lost money in banks during the country's financial crisis in 2019.
This law would allow people to slowly get their money back.
Small depositors would get their money back in small amounts over four years.
People with larger amounts of money in the bank would get special certificates instead of cash, which they can trade.
These certificates are backed by valuable things the central bank owns, like gold.
The law also says that banks and the central bank will share the cost of paying people back.
Some questions remain, like what happens if the banks or the central bank can't pay everyone back.
The government will hire an international company to check the central bank's assets to see how much money is available.
The goal is to help the economy recover and make things fair for people who lost their money.
Lebanese Prime Minister Nawaf Salam urged swift approval of a draft law to repay depositors affected by the 2019 financial collapse.
The law proposes repaying small depositors (less than $100,000) in monthly or quarterly installments over four years.
Large depositors will receive tradable, asset-backed securities issued by the central bank, with maturity periods ranging from 10 to 20 years.
The Association of Banks in Lebanon objected to the draft, stating it does not reflect banks' ability to meet their obligations.
The law requires an international audit of the central bank's assets and mandates banks to recapitalize.
- Who
- Lebanese Prime Minister Nawaf Salam, Finance Minister Yassine Jaber, Association of Banks in Lebanon, Mike Azar (financial expert)
- What
- Draft law for repaying depositors affected by the 2019 financial collapse
- When
- Draft law published on Friday, December 22, 2023
- Where
- Beirut, Lebanon
- Why
- To address a vast funding shortfall and revive the economy
- Estimated Funding Shortfall
- $70 billion (2022, now believed to be higher)
- Repayment Plan for Small Depositors
- Monthly or quarterly installments over 4 years
- Repayment Plan for Large Depositors
- Tradable, asset-backed securities issued by the central bank
- Maturity Period for Large Deposits
- 10-20 years depending on deposit size
- Banks' Responsibility
- 20% of the responsibility for payments for asset-backed securities
- Central Bank's Responsibility
- Up to 60% of the responsibility for payments for small deposits
- Gold Assets
- Risen in value since 2020, to be used as backing for securities
- International Audit
- Required to evaluate central bank's assets within one month