Lebanon Prosecutor Interrogates Bankers Over Capital Flight

Lebanese withdraw money from ATMs in the capital Beirut after the country imposed restrictions on dollar withdrawals and transfers abroad in an attempt to conserve dwindling foreign currency reserves | AFP
Lebanese withdraw money from ATMs in the capital Beirut after the country imposed restrictions on dollar withdrawals and transfers abroad in an attempt to conserve dwindling foreign currency reserves | AFP
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Lebanon Prosecutor Interrogates Bankers Over Capital Flight

Lebanese withdraw money from ATMs in the capital Beirut after the country imposed restrictions on dollar withdrawals and transfers abroad in an attempt to conserve dwindling foreign currency reserves | AFP
Lebanese withdraw money from ATMs in the capital Beirut after the country imposed restrictions on dollar withdrawals and transfers abroad in an attempt to conserve dwindling foreign currency reserves | AFP

A Lebanese prosecutor Monday questioned bankers over more than 2 billion dollars in capital flight in past months despite strict banking restrictions in the crisis-hit country, judicial sources said.

Banks have since September imposed increasingly tight limits on dollar withdrawals and transfers abroad as part of measures to tackle a severe liquidity crisis.

But bankers stand accused of having sent millions of dollars abroad despite those limitations since mass anti-government protests erupted on October 17.

Lebanese banking association head Salim Sfeir, as well as representatives from 14 banks, appeared before financial prosecutor Ali Ibrahim, the sources said, AFP reported.

They testified "over the transfer abroad of 2.3 billion dollars during the two months since the start of the popular uprising", they said.

They were questioned over "the causes of the transfers abroad of the money of bank owners, which reduced liquidity in the internal financial markets".

They were also asked why other depositors were unable to make transfers abroad for trade or to pay tuition fees.

Bankers were asked to justify "the inability of depositors to withdraw from their US dollar accounts... while that restriction did not apply to the powerful".

Lebanon is currently facing its worst economic crisis since its 1975-1990 civil war.

The value of the Lebanese pound has plummeted on the black market, prices have risen, and many businesses have been forced to slash salaries, dismiss staff, or close.

Lebanon is one of the most indebted countries in the world, with a public debt equivalent to 150 percent of its GDP.

The country is now under pressure to pay a $1.2 billion Eurobond maturity on March 9.

Economists warn payment on time would eat away at plummeting foreign currency reserves, while bankers say a default would damage Lebanon's reputation with lenders.

Bank of America Merill Lynch in a November report estimated that around 50 percent of Eurobonds were held by local banks, while the central bank had around 11 percent.

Foreign investors owned the remainder or around 39 percent, it said.

But these figures may have changed, with local media reporting that local banks have recently sold a chunk of their Eurobonds to foreign lenders.

The judicial sources said those summoned on Monday were also asked about those sales.

According to AFP, representatives of other banks are to be called in later this week.



Alkhorayef Highlights Opportunities for Russian-Saudi Industrial Collaboration

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef speaks at the Russian-Saudi Dialogue Forum on Monday. (SPA)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef speaks at the Russian-Saudi Dialogue Forum on Monday. (SPA)
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Alkhorayef Highlights Opportunities for Russian-Saudi Industrial Collaboration

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef speaks at the Russian-Saudi Dialogue Forum on Monday. (SPA)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef speaks at the Russian-Saudi Dialogue Forum on Monday. (SPA)

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef emphasized on Monday the enduring strength of economic ties between Saudi Arabia and Russia.

Speaking at the Russian-Saudi Dialogue Forum, held as part of INNOPROM 2025 in Yekaterinburg, he stressed the importance of Saudi Arabia’s mining sector as a vital enabler for economic diversification as part of the Kingdom’s objectives under Saudi Vision 2030.

Underscoring the Kingdom’s vast mineral resources, he highlighted its strategic geographic location as a global trade hub that connects three continents, offering promising opportunities for international investors.

Alkhorayef praised the outcomes of the Saudi-Russian Joint Committee, emphasizing its role in identifying investment opportunities across key sectors and enhancing knowledge exchange between the two countries.

The minister called on forum participants to continue strengthening cooperation and creating tangible projects that support the sustainable growth of both Saudi Arabia and Russia. He also extended an open invitation to Russian counterparts to visit the Kingdom, explore its diverse investment prospects, and experience its rich cultural heritage, noting that Saudi nationals have been showing increasing interest in travel to Russia.

Alkhorayef praised the longstanding relationship between Saudi Arabia and Russia that has spanned over 100 years, creating a foundation to advance joint initiatives in industry, mining, technology, and global trade.

Saudi Arabia and Russia’s economic relations have already witnessed monumental growth in recent years, particularly in the fields of industry, mining, petrochemicals, and advanced manufacturing. Bilateral non-oil trade increased from $491 million in 2016 to $3.28 billion in 2024, reflecting a growing partnership between the two countries.

Alkhorayef is currently leading a high-level Saudi delegation to Russia, accompanied by senior officials from 18 government entities and more than 20 leading national companies representing priority sectors including industrial services, technology, manufacturing, machinery, mining, industrial automation, energy, tourism, and culture.