Lebanon: Banks Allow Withdrawal of Small Deposits

Lebanon’s central bank is seen closed under a national lockdown imposed to contain the spread of coronavirus, in Beirut, Lebanon March 17, 2020. REUTERS/Mohamed Azakir
Lebanon’s central bank is seen closed under a national lockdown imposed to contain the spread of coronavirus, in Beirut, Lebanon March 17, 2020. REUTERS/Mohamed Azakir
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Lebanon: Banks Allow Withdrawal of Small Deposits

Lebanon’s central bank is seen closed under a national lockdown imposed to contain the spread of coronavirus, in Beirut, Lebanon March 17, 2020. REUTERS/Mohamed Azakir
Lebanon’s central bank is seen closed under a national lockdown imposed to contain the spread of coronavirus, in Beirut, Lebanon March 17, 2020. REUTERS/Mohamed Azakir

In an attempt to avoid further escalation by Hezbollah, Lebanese banks have agreed with the Lebanese central bank to allow small depositors with dollar denominated accounts to withdraw their money in local currency.

Based on a circular issued by the central bank last week, the holders of accounts worth $3,000 or less will be able to withdraw their money in Lebanese pounds at the market rate, which is more than 50% higher than the official rate.

Speaker Nabih Berri received Central Bank Governor Riad Salameh on Tuesday, with whom he discussed the recent financial and monetary measures and the means to secure the money of small depositors.

Berri reaffirmed the need to deal with the “people’s banks deposits as sanctities that cannot be disposed of under any circumstances.”

The central bank's decision came a few days after a warning by Hezbollah. In a televised speech, the party's Secretary General, Hassan Nasrallah, said: “You are able to address the conditions of small depositors and students abroad, and this matter can no longer be tolerated.”

In remarks to Asharq Al-Awsat, well-informed sources said that Nasrallah’s rhetoric has pushed the banks to ease restrictions on withdrawals, “as the priority now was to provide the people with their money rather than searching for aid, especially in these difficult circumstances.”

“The party would have adopted greater escalatory steps if banks had not responded,” the sources underlined.

Banking sources told Asharq Al-Awsat that there were around 1.7 million accounts of less than $3,000. The total deposits of those accounts reach around $796 million, while the number of accounts, in which the value of deposits ranges between $3,000-20,000 is around 451,000, encompassing a total value of $4.2 billion.



EU Official Hold Talks in Algeria on ‘New Pact for Mediterranean’

European Commission Director-General for the Middle East, North Africa and the Gulf Stefano Sannino. (EU)
European Commission Director-General for the Middle East, North Africa and the Gulf Stefano Sannino. (EU)
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EU Official Hold Talks in Algeria on ‘New Pact for Mediterranean’

European Commission Director-General for the Middle East, North Africa and the Gulf Stefano Sannino. (EU)
European Commission Director-General for the Middle East, North Africa and the Gulf Stefano Sannino. (EU)

The European Commission’s Director-General for the Middle East, North Africa and the Gulf, Stefano Sannino, made an official visit to Algiers on Tuesday to discuss with senior Algerian officials the reviving of their “Partnership Agreement” and a plan to engage the partner countries of the Southern Neighborhood in the New Pact for the Mediterranean.

In a statement, the European Commission said Sannino will stay in Algeria until April 24.

“This mission is firmly in line with the consultations conducted on the New Pact for the Mediterranean, which the European Commission will adopt in the coming months, with a view to promoting a more integrated and supportive approach to regional cooperation,” the statement said.

During this visit, Sannino will hold talks with representatives of several Algerian ministerial departments, including Foreign Affairs, Energy, Finance, and Culture.

He will also take part, on Wednesday, in the opening of a conference on “New Investment Dynamics and Prospects for Cooperation” between the European Union in Algeria, jointly organized by the Delegation of the European Union in Algeria and the Algerian Investment Promotion Agency (AAPI), in the presence of representatives of the Algerian Economic Renewal Council (CREA) and the business community in Algeria.

The visit will provide a valuable opportunity to reaffirm the EU’s commitment to revitalizing bilateral cooperation with Algeria, within the broader and strategically articulated framework of the New Pact for the Mediterranean, the Commission said.

It added that the EU “aspires to a partnership that goes beyond the very strong existing relations, particularly in the energy sector, to build other strategic complementarities for sustainable and inclusive growth, in a changing geopolitical context and facing shared challenges such as reindustrialization, economic competitiveness, and the green transition.”

The visit comes as Algeria’s Foreign and Commerce ministries hold talks with the North Africa Unit at the Directorate-General for Neighborhood and Enlargement Negotiations of the European Commission, aimed at reviving their “Partnership Agreement” signed in 2002.

The new Agenda for the Mediterranean was launched by the European Union in 2021 to strengthen the strategic partnership with its Southern Neighborhood partners in trade and renewable energies, upgrading facilities and infrastructure, and managing migration and counter-terrorism issues.