No sign of new cabinet as Lebanese leaders meet, bank curbs continue

No sign of new cabinet as Lebanese leaders meet, bank curbs continue

Author: ReutersID: 1573151185236140500Thu, 2019-11-07 17:23

BEIRUT: Lebanon's outgoing Prime Minister Saad Al-Hariri met President Michel Aoun on Thursday without announcing progress toward forming a new government, as banking sources said most financial transfers out of the country remained blocked.

Already facing the worst economic crisis since the 1975-90 civil war, Lebanon has been pitched deeper into turmoil since Oct. 17 by an unprecedented wave of protests against the ruling elite that led Hariri to resign as prime minister on Oct 29.

Banks reopened on Friday after a two-week closure but customers have encountered restrictions on transfers out of the country and withdrawals of hard currency.

Maronite Christian politician Samy Gemayel warned that the financial system was on the verge of collapse, and urged the immediate formation of a politically neutral government.

A banking source said that generally all international transfers were still being blocked bar some exceptions such as foreign mortgage payments and tuition fees. A second banking source said restrictions had gotten tighter.

The chairman of the Association of Banks in Lebanon said earlier this week the banks were not applying a policy of restrictions "but we are prioritising“ after the two-week closure that had led requests to pile up.

Hariri has been holding closed-door meetings with other