Details Of The Potential Plan To Give Lebanese People’s Bank Deposits Back

Details Of The Potential Plan To Give Lebanese People’s Bank Deposits Back

Lebanon’s financial crisis has severely impacted the country’s economy, and depositors are growing increasingly concerned about their funds.

Delving deeper into the government’s latest plan, according to LBCI, it is crucial to note two key figures:

The total deposits in Lebanese banks amount to $93.5 billion. The banks hold only $21 billion in return.

This $21 billion is distributed as follows:

$4 billion held abroad by correspondent banks for import transactions and loan repayments to international institutions.

$6 billion in loans granted by banks to the private sector, which will be repaid over time.

Approximately $1 billion in Eurobonds is owed by banks to the state.

$10 billion in mandatory reserves held by banks at the Central Bank of Lebanon.

Of the total deposits, 88% represent small depositors (less than $100,000), and the remaining 12% belong to large depositors.

The government’s latest plan proposes returning $100,000 to each depositor, ensuring that all funds for small depositors are returned.

However, for larger deposits, the process is more complicated.

For those with more than $1 million in deposits, they will be required to provide evidence to the bank about the source of these funds.

Any interest gains from high-interest rates after 2015 will be deducted from the deposit for those with balances above $100,000.

Additionally,