Lebanon’s banks to go on strike in protest against lawsuits and arrests

 Association of Banks in Lebanon (ABL) announced on Friday that banks would go on strike from Monday to confront politicians over a build-up of “populist and harmful stances” taken against the banking sector in the country.

Nearly 49 banks plan to strike on Monday, according to the latest statement by Lebanon’s banking association. ABL is taking action over the recent treatment of the Banking sector, especially the arrest of Creditbank Chairman Tarek Khalife.

This week, Khalife and his family members were held at Beirut’s Rafic Hariri International Airport due to a criminal complaint filed against him at the Public Prosecution Office in Mount Lebanon.

In March, a Lebanese judge issued a travel ban for Khalife and froze all his bank’s assets, including properties and vehicles. Khalife is now on bail.

ABL said that banks “can no longer bear harmful and populist situations at their expense and the expense of the economy.” ABL went on to accuse people looking into the lawsuits of being unaware of basic banking and accounting laws.

What did the experts say? Association of Banks in Lebanon (ABL) announced on Friday that banks would go on strike from Monday to confront politicians over a build-up of “populist and harmful stances” taken against the banking sector in the country.

Nearly 49 banks plan to strike on Monday, according to the latest statement by Lebanon’s banking association. ABL is taking action over the recent treatment of the Banking sector, especially the arrest of Creditbank Chairman Tarek Khalife.

This week, Khalife and his family members were held at Beirut’s Rafic Hariri International Airport due to a criminal complaint filed against him at the Public Prosecution Office in Mount Lebanon.

In March, a Lebanese judge issued a travel ban for Khalife and froze all his bank’s assets, including properties and vehicles. Khalife is now on bail.

ABL said that banks “can no longer bear harmful and populist situations at their expense and the expense of the economy.” ABL went on to accuse people looking into the lawsuits of being unaware of basic banking and accounting laws.

What did the experts say?

Economic experts recently said that the strike by ABL could lead to banks ceasing to pump dollars into the market under the central bank of Lebanon, Banque Du Liban’s circulars. They expect that people could turn to the parallel market for dollars.

Experts also expect that ABL’s move will harm the banking sector of Lebanon. Public sector employees of the country have not yet received last month’s salaries because of their strike. Finance Minister Youssef Khalil urged ministries and administrations to speed up the process of giving salaries to employees. He said that salaries would be paid to employees within the next 10 days.

Lebanon is in the third year of an economic meltdown. The economic crisis has affected the monthly minimum wages of people. The World Bank Lebanon Economic Monitor Fall 2021 report also categorized the Lebanon economic crisis as the top three most severe economic collapses worldwide since the 1850s. 

Economic experts recently said that the strike by ABL could lead to banks ceasing to pump dollars into the market under the central bank of Lebanon, Banque Du Liban’s circulars. They expect that people could turn to the parallel market for dollars.

Experts also expect that ABL’s move will harm the banking sector of Lebanon. Public sector employees of the country have not yet received last month’s salaries because of their strike. Finance Minister Youssef Khalil urged ministries and administrations to speed up the process of giving salaries to employees. He said that salaries would be paid to employees within the next 10 days.

Lebanon is in the third year of an economic meltdown. The economic crisis has affected the monthly minimum wages of people. The World Bank Lebanon Economic Monitor Fall 2021 report also categorized the Lebanon economic crisis as the top three most severe economic collapses worldwide since the 1850s.