The Lebanese government approves a law that allows depositors to gradually recover their money

Today, the Lebanese Council of Ministers approved a draft law aimed at addressing the financial crisis that has crippled the Lebanese economy for six years, despite the significant opposition expressed by political parties, depositors, and commercial banks to this legislation.
The legislation, known as the “Fiscal Gap” Act, is part of a series of reform measures requested by the International Monetary Fund in order to obtain financing from the Fund.
The legislation aims to distribute the massive losses resulting from the financial collapse in Lebanon in 2019 between the state, the central bank, commercial banks, and depositors, and to allow depositors whose savings were frozen to gradually recover their money.
In 2022, the government estimated losses resulting from the crisis at about $70 billion, a figure that is now likely to be even higher.
The Council of Ministers approved the law today, by a majority of 13 votes to nine, in the face of opposition from ministers from across the divided political spectrum in Lebanon.
Dozens of people protested near the government headquarters during the Cabinet meeting, saying that the law does not protect their deposits. The Association of Banks in Lebanon, which represents commercial banks in the country, also criticized the draft law.