Lebanon’s Fransabank closes all branches after judicial order

Lebanon’s Fransabank closes all branches after judicial order
March 16, 2022, 3:50 pm

Fransabank Group in Lebanon

The Arab News reported, a Fransabank source told Reuters, Lebanon’s Fransabank on Wednesday closed all of its branches in the country following a judicial order freezing its assets based on a lawsuit filed by a depositor.

Lebanese banks have frozen most savers out of their hard currency deposits since a financial meltdown in 2019, but the controls were never formalized in law and have been challenged in courts.

His lawyer Rami Ollaik said that the judicial order required Fransabank to reopen the account of Egyptian depositor Ayad Ibrahim and pay out his deposit in cash, or else the bank’s assets would be seized.

The judge who issued the order and Ibrahim could not be reached for comment.

The Fransabank source said that following the order the bank would not be able to make any payments, including of salaries, because its assets have been frozen. The source said, the bank has roughly 50 branches.

Lebanon-Armenian street (File photo: Pixabay)

The Fransabank source said: “We closed because the order is on all the belongings of the bank, including the safes, at the tellers, where you can get the cash. I can’t get (cash), and I can’t receive."

Fransabank had issued Ibrahim a cheque for the value of his deposit and he was therefore no longer a client, the Fransabank source said, adding that he had signed for the cheque at a notary.

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A spokesperson for United For Lebanon, an anti-corruption group that is representing Ibrahim in the case, said he had “signed for the cheque but with reservation.”

Source: arabnews

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