Saudi Press

Saudi Arabia and the world
Sunday, Jun 01, 2025

Lebanese banks to close ‘indefinitely’ as hold-ups continue

Lebanese banks to close ‘indefinitely’ as hold-ups continue

Lebanon’s banks have been in crisis for months as depositors demand access to their savings.

Lebanese banks have decided to close their doors to clients indefinitely, two bankers have told Reuters, amid an unprecedented wave of hold-ups by frustrated depositors seeking access to their savings.

The two sources told the news agency on Friday that banks would continue urgent operations for clients and back-office services for business, but front-office services would remain suspended.

Banks closed for about a week last month in similar circumstances, but reopened at the beginning of October to allow employees to withdraw salaries.

In mid-September, a young Lebanese woman, Sali Hafiz, was lauded as a national hero after forcing staff at a BLOM Bank branch in Beirut to give her thousands of dollars from her own account by waving a replica gun in order to fund her sister’s cancer treatment in hospital. She told Al Jazeera that her actions were a response to the bank “stealing” her money.

Although she was not the first depositor to hold up a bank to demand access to their savings, her case triggered a snowball effect with multiple hold-ups taking place since then as the population grows more frustrated over strict measures preventing depositors from accessing most of their dollar savings.

Just last week armed depositors stormed three commercial banks in different locations across the country.

A politician, Cynthia Zarazir, entered a bank on Wednesday demanding access to her savings, although she was unarmed.




Banks started imposing such informal capital controls following an economic downturn which began in 2019. Since then, the local currency has lost about 90 percent of its value, the country’s gross domestic product has contracted by more than 40 percent and inflation remains in the triple digits.

The restrictions mean that depositors are only allowed to withdraw a limited amount of money per day, and most withdrawals of foreign currency have to be carried out at an exchange rate unfavourable to depositors, meaning that depositors will lose almost 80 percent of the value of the money in their savings if they withdraw it.

The World Bank defined Lebanon’s economic crisis as the worst the world has witnessed since the 1850s. The government has been slow to implement much-needed reforms, further exacerbating the country’s economic meltdown, according to the International Monetary Fund (IMF).

Those reforms are key to unlocking an IMF bailout to help ease the crisis, which economists argue has been caused by decades of wasteful spending and corruption.

Lebanon’s bank association has previously called on the government to enact formal capital controls to replace the informal controls banks adopted in 2019, but parliament has repeatedly failed to pass the law.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
UAE Offers Free ChatGPT Plus Subscriptions to Citizens
Lebanon Initiates Plan to Disarm Palestinian Factions
Iran and U.S. Make Limited Progress in Nuclear Talks
The Daily Debate: The Fall of the Dollar — Strategic Reset or Economic Self-Destruction?
Trump Administration's Tariff Policies and Dollar Strategy Spark Global Economic Debate
OpenAI Acquires Jony Ive’s Startup for $6.5 Billion to Build a Revolutionary “Third Core Device”
Turkey Weighs Citizens in Public as Erdoğan Launches National Slimming Campaign
Saudi-Spanish Business Forum Commences in Riyadh
Saudi Arabia and Spain Sign MoU to Boost SME Sectors
UK Suspends Trade Talks with Israel Amid Gaza Offensive
Iran and U.S. Set for Fifth Round of Nuclear Talks Amid Rising Tensions
Russia Expands Military Presence Near Finland Amid Rising Tensions
Indian Scholar Arrested in Crackdown Over Pakistan Conflict Commentary
Israel Eases Gaza Blockade Amid Internal Dispute Over Military Strategy
President Biden’s announcement of advanced prostate cancer sparked public sympathy—but behind closed doors, Democrats are in panic
A Chinese company made solar tiles that look way nicer than regular panels!
Indian jet shootdown: the all-robot legion behind China’s PL-15E missiles
The Chinese Dragon: The True Winner in the India-Pakistan Clash
Australia's Venomous Creatures Contribute to Life-Saving Antivenom Programme
The Spanish Were Right: Long Working Hours Harm Brain Function
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
US and UAE Reach Preliminary Agreement on Nvidia AI Chip Imports
President Trump and Elon Musk Welcomed by Emir of Qatar Sheikh Tamim with Cybertruck Convoy
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
Saudi Arabia Emerges as Global Tech Magnet with U.S. Backing and Trump’s Visit
This was President's departure from Saudi Arabia. The Crown Prince personally escorted him back to the airport.
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
Trump takes a blow torch to the neocons and interventionists while speaking to the Saudis
US and Saudi Arabia Sign Landmark Agreements Across Multiple Sectors
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Elon Musk Joins Trump Meeting in Saudi Arabia
Trump says it would be 'stupid' not to accept gift of Qatari plane
Quantum Computing Threatens Bitcoin Security
Michael Jordan to Serve as Analyst for NBA Games
×