The Association of Banks in Lebanon (ABL) announced on Thursday a return to strike starting from the morning of Tuesday, March 14, 2023, calling for the swift implementation of legal measures to put an end to the inconsistency in the adoption of criteria in issuing some judgments that deplete the remaining funds belonging to all depositors and not just some at the expense of others.
The association also demanded the rational, fair, and final resolution of this crisis, in which the state, in particular, assumes its responsibility.
In a statement, ABL referred to their previous statements, which emphasized the need to correct the inconsistency in some arbitrary judicial decisions against it.
Regarding what they saw as the distinguished public prosecutor's first step in the right direction, the association expressed cautious positivity, hoping that other steps in the same approach would follow, where judicial decisions would regain their previously known justice, efficiency, impartiality, and equality.
Furthermore, ABL said, "unfortunately, the banks were right to be cautious, as in the past few days, new arbitrary judicial decisions have been issued, which have been inconsistent.The banks are obliged to accept the repayment of their foreign currency debts from borrowers with a check drawn on the Central Bank of Lebanon or in LBP based on an exchange rate of 1,500 LBP per US dollar. In contrast, the banks must pay or transfer foreign currency deposits in cash and the same currency to some depositors, to the detriment of other depositors."
The association also considered that these judicial decisions did not consider the basics of banking operations. Once again, banks do not print currencies. They take depositors' money to lend to those in need, expecting it to be repaid with interest, which they return to the depositors along with their profit margin.
“Suppose a judicial decision requires the bank to accept repayment of the debt granted from deposits in foreign currency with a check drawn on the Central Bank of Lebanon or in Lebanese LBP based on an exchange rate of 1,500 LBP per US dollar. How can the bank return the deposit to the depositor in foreign currency in cash? And if the bank manages to return it to someone from its reserves, how can it return it to others?” the statement added.
"For your information, such arbitrary judicial decisions have required banks that had lent to the private sector on October 17, 2019, about forty billion US dollars to collect more than thirty billion US dollars by checks drawn on the Central Bank of Lebanon or in Lebanese lira at a rate of 1,500 LBP per US dollar. The judicial decisions did not realize that this reduces the chances of depositors to recover their foreign currency deposits, and even eliminates them," the statement continued.