Lebanon’s financial prosecutor has frozen the assets of 20 Lebanese banks, their top bosses and board members, state media and judicial sources said on Thursday.
Judge Ali Ibrahim gave notice to the central bank and the country’s banking association, state news agency NNA said without naming the banks or giving details of the assets.
The move is part of an ongoing investigation, a senior judicial source said without elaborating.
The source said the decision involved some of Lebanon’s biggest banks, including Blom Bank, Bank Audi, Byblos Bank, Bank of Beirut, and SGBL (Societe Generale De Banque Au Liban SAL).
The Association of Banks in Lebanon (ABL), the body that represents the nation’s lenders, could not be reached for immediate comment.
Lebanon is facing unprecedented economic and financial strains, which came to a head last year as capital inflows slowed and protests erupted against a ruling elite accused of plunging the country into crisis.
The heavily indebted state is contending with a weakening Lebanese pound, soaring inflation and a severe dollar shortage that has hit imports.
Lebanon’s domestic banks, which for years funneled deposits to the state, hold the bulk of the sovereign debt.
Public anger has also turned to the banks, which have curbed people’s access to their savings and blocked transfers abroad in recent months. The head of the banking association has said the measures are to keep Lebanon’s wealth in the country.
The government separately approved a draft law on Thursday aimed at lifting banking secrecy. The information minister said the law, which will go to parliament, would apply to ministers, MPs, and a range of public officials.
