Staged deposits repayment
under planning by MOF and BDL

$34 billion gap of 'anomalies' to be wiped out

Dispute over $16.5 billion is a stumbling block

In preparation of presenting a gap law to the government and subsequently to Parliament, the Ministry of Finance (MoF) and The Central Bank (BDL) are finalizing a strategy to restitute bank deposits, aiming to protect depositors of small amounts while managing the central bank’s own financial constraints. The plan includes staged payments, asset-backed bonds, and legal safeguards to ensure a structured approach.

Under the proposal, deposits of up to $100,000 – representing roughly 85 percent of depositors – would be repaid in full over several years. Accounts up to $1 million, accounting for about 14 percent of depositors, would receive a combination of partial cash repayments and bonds issued by BDL, backed by its assets. Deposits above $1 million would largely be compensated through long-maturity bonds, tradable on the secondary market.

Repayment would not discriminate between residents and non-residents, Lebanese and foreign account holders, or small and large depositors, although smaller accounts would receive priority in liquidity.

The plan relies on BDL covering a significant portion of the estimated $50–55 billion restitution, backed by its assets. These include real estate, gold reserves, and claims on the State such as the $16.5 billion receivable. That last claim is being disputed by MoF. Banks and the State would also contribute to the repayment effort. Legal protections under Articles 13 and 113 of the Code of Money & Credit, as well as Gold Law 48/86, are cited to support the plan. BDL has at several occasions stated assurances that gold reserves would remain untouched.

BDL’s approach includes a deficit cleanup to reduce its $34 billion gap between liabilities and assets, looking what it calls ‘anomalies’, i.e. irregular claims and suspicious inflows, especially those that cannot demonstrate the true origin of their funds, or conform to rules of compliance. Another anomalies include the conversion of lira to dollar at the then-official rates (LL1,507 to the dollar) when the market rate has much higher. The plan is also considering negotiating pat earned interest, especially what it considers ‘excessive’, even-thought its threshold has not been determined yet.

The plan signals a careful balancing act: ensuring depositor restitution while safeguarding the central bank’s remaining resources and avoiding forced liquidation of strategic assets.