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Lebanon’s Fransabank Wins Appeal but Vaults Still Sealed, Lawyer Says

A police car is parked in front of a branch of Fransabank in Beirut, Lebanon March 16, 2022. (Reuters)
A police car is parked in front of a branch of Fransabank in Beirut, Lebanon March 16, 2022. (Reuters)
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Lebanon’s Fransabank Wins Appeal but Vaults Still Sealed, Lawyer Says

A police car is parked in front of a branch of Fransabank in Beirut, Lebanon March 16, 2022. (Reuters)
A police car is parked in front of a branch of Fransabank in Beirut, Lebanon March 16, 2022. (Reuters)

Lebanon's Fransabank won an appeal on Tuesday against a judicial ruling that froze its assets but its vaults remained sealed, a lawyer for the man who brought the case against the bank said.

Fransabank could not immediately be reached for comment and a lawyer for the bank declined to comment when contacted by Reuters.

Fransabank said last week it would appeal against the judicial ruling in favor of a man who wants the bank to reopen his account and pay out the deposit in cash, a bid to unlock funds trapped in Lebanon's banking system since 2019.

Last week's ruling by Judge Mariana Anani resulted in the sealing of vaults at Fransabank branches with red wax, leading the bank to announce on Friday that it was unable to execute cash transactions.

Speaking to Reuters by phone, Rami Ollaik, the lawyer for the man who brought the case, said Fransabank had won a ruling halting execution of last week's ruling.

However, he said Anani's last order in the case had been to unseal the vaults on Friday.

"When a decision is taken to stop or freeze execution, it is frozen from the last decision or step taken by the executive department ... The last decision taken by Judge Anani was on Friday morning, March 18. It was a decision to lift the red wax, based on our request," he said.

"Stopping the execution according to the court of appeal decision, means ... stopping Anani's last decision of lifting the red wax," he added.

Broadcasters Al Jadeed TV and LBC TV earlier reported Fransabank's appeal had been accepted and the vaults unsealed.

More than $100 billion remains stuck in a banking system paralyzed since 2019, when the Lebanese economy collapsed due to decades of unsustainable state spending, corruption and waste.

Banks have called on the government to pass a capital control law, but in the absence of formal controls, they have largely blocked dollar withdrawals and transfers abroad, sparking numerous legal challenges, with mixed results.

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Lebanese Army Awaits Political Decision to Implement UNSCR 1701

Soldiers from the Lebanese Army and the United Nations Interim Force in Lebanon (UNIFIL) patrol near the southern village of Marjayoun (AFP).
Soldiers from the Lebanese Army and the United Nations Interim Force in Lebanon (UNIFIL) patrol near the southern village of Marjayoun (AFP).
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Lebanese Army Awaits Political Decision to Implement UNSCR 1701

Soldiers from the Lebanese Army and the United Nations Interim Force in Lebanon (UNIFIL) patrol near the southern village of Marjayoun (AFP).
Soldiers from the Lebanese Army and the United Nations Interim Force in Lebanon (UNIFIL) patrol near the southern village of Marjayoun (AFP).

Discussions are underway on the role of the Lebanese army in maintaining security in South Lebanon amid rising optimism about a potential ceasefire between Israel and Hezbollah and the implementation of UN Security Council Resolution 1701

As part of these preparations, the Lebanese government has begun strengthening the army by recruiting 1,500 new soldiers out of the 6,000 needed, aligning with the outcomes of the Paris Conference held on October 23, which allocated 200 million euros to support the military institution, from a broader package intended to help the Lebanese people during the Israel-Hezbollah war.

In remarks to Asharq Al-Awsat, a security official highlighted that the army currently has 4,500 personnel stationed south of the Litani River but requires additional manpower.

The unidentified official noted, however, that any effective deployment would require a political decision and government support. “The Lebanese military will implement Resolution 1701 as is, with no intention of clashing with any party. However, if Israel violates Lebanese sovereignty, the army is fully prepared to respond,” he said.

Although Hezbollah opposes withdrawing from south of the Litani and handing over border security duties to the Lebanese military and UNIFIL, claiming the army lacks the capabilities to defend against Israeli aggression, the security source clarified that the military has been authorized to repel any attacks but will avoid initiating conflict. The army’s expanded deployment depends on a political decision, which, once made, will see the military act without hesitation to uphold Lebanese sovereignty.

While military preparedness is essential, Brigadier General Wehbeh Qatisha argues that Lebanon’s security requires more than just troops or advanced weaponry at the border. The presence of the Lebanese military as a representative of the Lebanese state is also a significant deterrent. He pointed out that prior to 1970, Israel refrained from attacking Lebanon, despite a much smaller army. However, he cautioned that even with a substantial deployment today, the persistence of Hezbollah’s military presence would continue to undermine Lebanon’s stability and security.

Since the 1969 Cairo Agreement, which allowed the Palestine Liberation Organization (PLO) to launch operations against Israel from southern Lebanon, the Lebanese army has been restricted in its ability to enforce security along the border. After the PLO’s departure in 1982, Hezbollah took over military operations in the South. Even after the 2006 war and the adoption of Resolution 1701, which called for the Lebanese military and UNIFIL to secure the border, Hezbollah retained its armed presence and continued to conduct exercises simulating conflict with Israel. The latter violated the international resolution thousands of times, until the last war broke out against the background of turning southern Lebanon into a front supporting Gaza.

Qatisha emphasized that the path to stability lies in comprehensive implementation of international resolutions, particularly 1701 and 1559, and restricting arms to the Lebanese army. He argued that achieving balanced deterrence requires not only military force but also a commitment to diplomacy and international support.