Banking Association Reassures Lebanese their Deposits Are Safe

The head of the Association of Banks in Lebanon, Salim Sfeir, has made assurances that deposits are safe and that the temporary measures were only aimed at managing the current crisis.

“Things will soon return to normal as the new government begins to work,” he said Thursday.

Sfeir’s assurances came one day after Lebanese Prime Minister Hassan Diab asked the government and the country’s banks for a plan to restore confidence amid a huge economic and financial crisis.

“There is no fear regarding the deposits in Lebanese banks,” Sfeir said, adding that the banking restrictions on transfers were temporary and exceptional measures to manage the crisis.

Protests erupted in October across the country against government corruption, tax rises and the political elite, forcing Saad Hariri to resign as prime minister.

Since November, banks have been imposing strict measures on capitals and withdrawals.

They have blocked nearly all transfers abroad and curbed dollar withdrawals - including limits of $200 a week.

“Today, we are facing a new phase and we should start searching for a clear and effective policy to activate the productive sectors, mainly the national industry,” said Sfeir.

He also called on the Lebanese to be more optimistic. “Now is the time for us to work and to enhance confidence in Lebanon. The government should be given a chance to offer its intended results.”

Last week, almost a month after he was designated Lebanon's PM, Diab announced the formation of his 20-minister cabinet.

Sfeir said that the Lebanese should differentiate between the roles played by parties concerned with this crisis: The government, the Central Bank and banks.

“Coordination between (Central Bank Governor Riad) Salameh and the Association of Banks is necessary amid the exceptional circumstances that Lebanon is currently going through,” he said.