Report: Lebanese Taking Legal Action Against their Banks
Lebanese courts are full of dozens of lawsuits demanding that banks pay account holders the sums of money they need to withdraw, the Saudi Asharq al-Awsat reported on Thursday.
The first lawsuit was filed in November by Judge of Urgent Matters Ahmed Mezher against a bank in Nabatieh.The Judge ordered the release of 129 thousand euros, without delay and under penalty of coercive fine of 20 million pounds for each day of delay.
A judicial source told the daily that Mezher issued another similar decision two weeks ago obliging another bank to “effectively and immediately” return the funds of one of the depositors amounting to 400 thousand euros under penalty of imposing a high coercive financial fine for each day of delay.
The judicial source pointed out “there are dozens of similar cases filed with urgent matters judges and criminal courts in all Lebanese governorates mainly in Beirut, Mount Lebanon and the Bekaa region.”
A banking source admitted to the daily that the lawsuits “greatly confused the banking sector, it is no secret anymore,” he said.
But he accused “some lawyers of seducing depositors with their ability to withdraw their money according to decisions and judicial rulings within a quick time limit which motivated them to file these cases, knowing that the depositors' money is safe despite exceptional and compelling measures banning withdrawal of all deposits, because it strikes the banking sector and leads to a liquidity crisis."
Banks are imposing unprecedented capital controls to protect their deposits amid a deepening economic crisis unprecedented in Lebanon’s history.
Banks have put a withdrawal ceiling of $200 a week on most accounts, while totally blocking outside transfers.
Since October 17, Lebanese have been staging nationwide protests against mismanagement and corruption. Protesters have been holding brief sit-ins inside banks in part of their focus on banking policies they complain are inefficient and corrupt.
Source: Naharnet
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