Lebanons Cabinet Approves Plan to Return Depositors Money: A Step Towards Economic RecoveryLebanons Cabinet has taken a significant step towards resolving the countrys banking crisis by approving a draft law to address losses from the 2019 financial meltdown and establish a mechanism to repay depositors whose savings vanished when banks froze accounts. The plan, which passed with a narrow vote of thirteen in favor and nine against, aims to return money to everyday people who have been disproportionately affected by the crisis.Under the new law, smaller depositors, who make up eighty-five percent of account holders, will receive their full amounts back over four years. Larger accounts will receive up to one hundred thousand dollars in cash first, with the remaining balance converted into tradable bonds backed by the central banks fifty billion dollars in assets.The approval of the law comes amidst protests outside the government building, with citizens demanding action and expressing skepticism about the plans effectiveness. The banking crisis has been marked by a long-standing blame game, with banks accusing the government of corruption and critics alleging that banks operated a Ponzi scheme by paying old deposits with new money instead of maintaining reserves.The new law aligns with demands from the International Monetary Fund, which has been waiting for over five years for Lebanon to implement economic reforms. The Lebanese pound has lost more than ninety percent of its value against the dollar, pushing over half the population into poverty and forcing a cash-only lifestyle with zero trust in banks.With new leaders like President Joseph Aoun and Prime Minister Salam promising real change and committing to tackle the crisis head-on, the approval of the law could potentially restart Lebanons stalled recovery and restore some investor confidence.

The Daily News Now! — Every city. Every story. AI-powered.

---

Hosted on Acast. See acast.com/privacy for more information.