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.



China's Industrial Profits Narrow Decline but 2024 Likely Worst Year in Decades

An employee works at a carbon fibre production line inside a factory in Lianyungang, Jiangsu province, China October 27, 2018. REUTERS/Stringer
An employee works at a carbon fibre production line inside a factory in Lianyungang, Jiangsu province, China October 27, 2018. REUTERS/Stringer
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China's Industrial Profits Narrow Decline but 2024 Likely Worst Year in Decades

An employee works at a carbon fibre production line inside a factory in Lianyungang, Jiangsu province, China October 27, 2018. REUTERS/Stringer
An employee works at a carbon fibre production line inside a factory in Lianyungang, Jiangsu province, China October 27, 2018. REUTERS/Stringer

China's industrial profits fell at a slower clip in November, official data showed on Friday, but the annual decline in earnings this year is expected to be the worst in over two decades due to persistently soft domestic consumption.

The world's second-largest economy has been struggling to mount a strong post-pandemic revival, as business and household appetites for spending and investment remain subdued amid a prolonged housing downturn and fresh trade risks from the incoming US administration of President-elect Donald Trump.

Industrial profits fell 7.3% in November from the same month last year, following a 10% drop in October, National Bureau of Statistics (NBS) data showed, Reuters reported.

The narrower decline in November pointed to improved profits as recent economic stimulus measures start to have an effect, said Zhou Maohua, a macroeconomic researcher at China Everbright Bank.

The profit numbers were also in line with a slower decline in factory-gate prices in November. The producer price index fell 2.5% year-on-year versus the 2.9% drop in October.

The World Bank on Thursday revised up its 2024 economic growth forecast for China slightly to 4.9% from its June forecast of 4.8%.

Still, in the first 11 months of 2024, industrial profits declined 4.7%, deepening a 4.3% slide in the January-October period, reflecting still tepid private demand in the Chinese economy.

China's full-year industrial profits are set to show their biggest drop in percentage terms since 2011. However, when smaller companies are included under a previous compilation methodology, this year's profit decline is expected to the worst since at least 2000.

A spate of economic indicators released this month pointed to mixed results, with industrial output accelerating in November while new home prices fell at the slowest pace in 17 months.

The industrial sector is undergoing an uneven recovery amid insufficient demand, Zhou said, pointing to difficulties facing real estate and some related industries as evidence of this malaise.

China's leaders vowed in a key policy meeting this month to raise the deficit, issue more debt and loosen monetary policy to maintain a stable economic growth rate. The government also recently pledged to step up direct fiscal support to consumers and boosting social security.

Beijing has agreed to issue a record $411 billion special treasury bonds next year, Reuters reported.

Profits at state-owned firms fell 8.4% in the first 11 months, foreign firms posted a 0.8% decline and private-sector companies recorded a 1% fall, according to a breakdown of the NBS data.

Industrial profit numbers cover firms with annual revenues of at least 20 million yuan ($2.7 million) from their main operations.