Lebanese depositors smash up, burn Beirut banks

SEVERAL dozen Lebanese protesters attacked banks and blocked roads in a Beirut neighbourhood on Thursday (Feb 16), as they demonstrated against informal restrictions on cash withdrawals and rapidly deteriorating economic conditions.

At least six banks had been targeted as the Lebanese pound hit a new record low on Thursday, said a spokesperson for Depositors Outcry, a lobby representing depositors with money stuck in the country’s banking sector.

A bank in the Badaro neighbourhood smouldered as firefighters sprayed water on flames, while riot police stood nearby with shields.

Since 2019, Lebanese banks have imposed restrictions on withdrawals in US dollars and Lebanese pounds which were never formalised by law. To gain access to their funds, depositors resort to lawsuits and, often, force.

The Lebanese pound has lost more than 98 per cent of its value since the country’s financial sector imploded in 2019. It was changing hands at around 80,000 pounds per greenback on Thursday, dropping from 70,000 pounds just two days earlier.

The country’s central bank, which has struggled to manage the crisis, did not respond to a request for comments on why the pound had crashed, and what it was doing to address the issue.

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The office of Lebanon’s prime minister said work was ongoing to remedy financial conditions in the country.

Lebanon made a first step towards securing an International Monetary Fund bailout in April 2022 but, nearly a year later, has failed to carry out the reforms needed to finalise it. REUTERS