Lebanon Banks, Prosecutor Agree Rules for Easing Deposit Restrictions

Lebanese pound banknotes on display at a money exchange shop in Beirut. (Reuters)
Lebanese pound banknotes on display at a money exchange shop in Beirut. (Reuters)
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Lebanon Banks, Prosecutor Agree Rules for Easing Deposit Restrictions

Lebanese pound banknotes on display at a money exchange shop in Beirut. (Reuters)
Lebanese pound banknotes on display at a money exchange shop in Beirut. (Reuters)

Lebanon's public prosecutor has agreed with commercial banks a set of rules aimed at protecting the rights of depositors, state news agency NNA reported on Tuesday, potentially easing restrictions on deposits amid a dollar shortage.

Lebanese banks, fearing capital flight and grappling with an acute hard currency crunch, have imposed tight controls on withdrawals and transfers abroad, drawing outrage from depositors unable to access their savings.

The agreement, which appears to be an attempt in part to standardize rules across the sector, states banks must transfer foreign currency abroad for payment of school fees, medical costs, taxes and "all that is necessary," as well as for imports of medical supplies, foodstuffs not produced in Lebanon, and goods deemed critical by the central bank, NNA reported.

Banks must also pay out in full any hard currency transferred into Lebanon from abroad and refrain from changing any deposits from dollars to Lebanese pounds without customer consent, NNA reported.

An official at the public prosecutor's office confirmed the new rules, but did not provide further comment.

The rules come days after Lebanon announced it would not meet its upcoming debt payments in order to preserve dwindling foreign currency reserves to cover essential imports.

The central bank governor has called for capital controls to be standardized so depositors are treated equally and fairly and Prime Minister Hassan Diab said the government would soon present a draft law to standardize the controls.



ECB is Back to Square One as US-Iran War Resumes

FILE PHOTO: A view of the European Central Bank (ECB) headquarters in Frankfurt, Germany, March 6, 2025. REUTERS/Jana Rodenbusch/File Photo
FILE PHOTO: A view of the European Central Bank (ECB) headquarters in Frankfurt, Germany, March 6, 2025. REUTERS/Jana Rodenbusch/File Photo
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ECB is Back to Square One as US-Iran War Resumes

FILE PHOTO: A view of the European Central Bank (ECB) headquarters in Frankfurt, Germany, March 6, 2025. REUTERS/Jana Rodenbusch/File Photo
FILE PHOTO: A view of the European Central Bank (ECB) headquarters in Frankfurt, Germany, March 6, 2025. REUTERS/Jana Rodenbusch/File Photo

The European Central Bank is back to square one in its fight against high inflation in the euro zone after new hostilities between the US and Iran caused energy prices to rise again, ECB policymaker Yannis Stournaras said on Friday.

The ECB raised rates at its June 10-11 meeting and investors expect it to do so twice more ⁠over the next ⁠year to contain the fallout from the Iran war on fuel costs.

"Hostilities started again," Stournaras, the Greek central bank governor, told an event in Greece. "So we're back to ⁠square one and that shows how precarious and volatile is the situation in the Middle East and, as a consequence, it also shows the uncertainty surrounding inflation forecasts and therefore the challenges that policy has to face."

An unexpectedly rapid retreat in energy prices following a ceasefire deal between the US and Iran ⁠had ⁠taken pressure off the ECB to lift rates again at its next meeting on July 22-23, though the case for a hike later on remained firm, four sources told Reuters last week.

But traders have ramped up their bets on ECB hikes again in recent days on signs that the deal to end hostilities is in jeopardy.


Modi Visits New Zealand as Trade Deal Sparks India Pushback

Recent undercurrents of anti-migrant sentiment risk tarnishing Modi's trip to a nation long proud of its tolerance. MARTIN KEEP / AFP
Recent undercurrents of anti-migrant sentiment risk tarnishing Modi's trip to a nation long proud of its tolerance. MARTIN KEEP / AFP
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Modi Visits New Zealand as Trade Deal Sparks India Pushback

Recent undercurrents of anti-migrant sentiment risk tarnishing Modi's trip to a nation long proud of its tolerance. MARTIN KEEP / AFP
Recent undercurrents of anti-migrant sentiment risk tarnishing Modi's trip to a nation long proud of its tolerance. MARTIN KEEP / AFP

India's Prime Minister Narendra Modi lands in New Zealand on Friday touting a free trade deal that has sparked a backlash despite promises it will unlock jobs and economic riches.

On the agenda are trade, tourism and sport -- but recent undercurrents of anti-migrant sentiment risk tarnishing his trip to a nation long proud of its tolerance, AFP said.

New Zealand Prime Minister Christopher Luxon celebrated the signing in April of the free trade deal with the world's most populous nation, touting an export boom that would deliver jobs and investment in spades.

The pact is widely expected to be approved by New Zealand's parliament.

But not everyone is happy at the prospect.

Lawmakers in the populist New Zealand First Party, part of Luxon's governing coalition, railed against parts of the agreement covering migration and visas.

Modi will be in New Zealand for little more than a day, at the tail end of a July 6-11 tour that has also taken him to Indonesia and Australia.

He will be attending an official ceremony at government house and a business and sport event in Auckland -- the first visit to the country by an Indian leader in 40 years.

The big event is expected to be Modi's starring role before as many as 10,000 people from the Indian diaspora at a community event in Auckland's Spark Arena.

Despite the negative rhetoric about their ties from some quarters, New Zealand's Luxon has been promoting a welcoming image for Modi's visit to a country that is home to an Indian diaspora of about 300,000.

"This visit is about celebrating a winning partnership between New Zealand and India -- one that delivers for our people and supports greater prosperity and security for both our countries," he said.


Russia to Increase Economic Influence in Syria Through Commercial Logistics Hub at Syrian Port

A general view of the Russian Navy facility in Syria's coastal Tartous, Syria, December 14, 2024. REUTERS/Umit Bektas/File Photo
A general view of the Russian Navy facility in Syria's coastal Tartous, Syria, December 14, 2024. REUTERS/Umit Bektas/File Photo
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Russia to Increase Economic Influence in Syria Through Commercial Logistics Hub at Syrian Port

A general view of the Russian Navy facility in Syria's coastal Tartous, Syria, December 14, 2024. REUTERS/Umit Bektas/File Photo
A general view of the Russian Navy facility in Syria's coastal Tartous, Syria, December 14, 2024. REUTERS/Umit Bektas/File Photo

Moscow is moving to consolidate its economic influence in Syria by establishing a commercial logistics hub in the port of Tartous, a move that reflects a shift in its strategy from military presence to expanded economic weight.

The Russian move coincides with discussions over the future of Moscow’s military bases at Tartous and Hmeimim, as Washington plans to renew contracts and investments in the country.

According to Reuters, Russia hopes by mid-July to have the commercial logistics hub up and running in one of two berths at the naval base it leases in the Tartous port, while keeping a military presence at the other.

The hub will handle a wide range of Russian goods including wheat and grains, and target initial cargo volumes of about 250,000 tons per month while operations were expected to begin with a 30,000-ton grain shipment.

“The project is central to Russian efforts to maintain and expand its influence in Syria through economic channels, after the overthrow of former president Bashar al-Assad in 2024 deprived Moscow of its staunchest ally in the Middle East,” Syrian officials told Reuters on Thursday.

But much more than business is at stake, with a battle for influence under way as Washington seeks ways to ensure not only that Syria awards contracts to US companies but also curbs Moscow's military presence.

The officials said Moscow and Syria are now negotiating over the future of Russia's bases at Tartous and Hmeimim.

In 2025, Syria's new government cancelled a 49-year contract granting Russian company Stroytransgaz the right to develop commercial facilities at Tartous. The United Arab Emirates' DP World secured an $800 million, 30-year concession agreement to redevelop and operate the port.

But on June 6, the Russian-Syrian Business Council, a body operating under Russia's Ministry of Industry and Trade, announced plans to establish an “assembly and distribution center for Russian goods” at Tartous.

Ossama Ajaj, general manager of Rus Line and adviser to the Russian-Syrian Business Council, said the hub will initially handle Russian wheat, grains, animal feed, vegetable oils, timber, steel, clinker, coal, rice, sugar and mineral oils.

He said the hub will operate from Pier No. 4 at Tartous port, in what he called a “restricted zone” of the naval base. The other berth remains dedicated to Russian naval operations.

The project aims to establish a regular maritime route between Russia's Black Sea port of Novorossiysk and Tartous, from where goods will be distributed across Syria and neighboring countries.

Ajaj identified Iraq and Jordan as the primary target markets, followed by Saudi Arabia, Kuwait, Qatar and Bahrain. He added that the project will be run by Syria's General Authority for Ports and Customs.

Ajaj told Reuters cargo volumes of about 250,000 tons per month ⁠were being targeted initially and operations were expected to begin in mid-July with a 30,000-ton grain shipment.
He suggested Russia would maintain a “reduced military presence.”

Ajaj and two officials from Syria's foreign ministry said the project was outlined at a January 28 meeting in Moscow between Syrian President Ahmed al-Sharaa and Russian President Vladimir Putin. The officials called the meeting a turning point in efforts to revive economic cooperation.

Foreign Ministry spokeswoman Maria Zakharova said in June that Moscow and Damascus were discussing a possible “reformatting” of Russia's military facilities in Syria and that cooperation between the two countries was developing actively.

The commercial logistics hub is set to increase Moscow's already significant economic role in Syria. Some 85% of Syria's imported wheat — 2.9 million tons for the 2025-26 ⁠season — comes from Russia and Russian-occupied Crimea, a Syrian customs document showed.

Reuters has also reported that Syria's reliance on Russian crude oil imports has increased since Assad's fall. It received about 16.8 million barrels of Russian oil in 2025 and an estimated 60,000 barrels per day in the first months of 2026.

The project could help Russia maintain influence regardless of the eventual shape of its military presence, said Nanar Hawach, a senior Syria adviser at International Crisis Group.

“Russia's hold on Syria rests on what it supplies and maintains, and on its (United Nations) Security Council vote, which gives it influence that ⁠outlasts any drawdown of troops,” he said.

“A logistics role reinforces that by keeping Russia physically present at the port, strengthening its hand while the future of the base is being decide,” he noted.

The US is meanwhile watching closely.

Congressman Joe Wilson last month secured an amendment to the Pentagon budget directing it to assess options for reducing Russia's influence in Syria and securing the departure of its forces from Tartous and Hmeimim.

“We closely monitor Russian-backed commercial and logistics projects in Syria and are concerned that such initiatives may not contribute to stability in the country,” a US State Department official said in response to Reuters questions.

The official said the US was encouraging Syria to engage “trusted corporate partners – especially US firms” during the country's recovery and reconstruction after its civil war, while urging Damascus to respect US sanctions on Russia.