Depositors stage sit-in at French Embassy over 'financial pressure'

BEIRUT — Activists from “Cry of the Depositors” and other groups held a sit-in Friday outside the French Embassy to protest what they called French interference over Lebanon’s year-end financial gap, saying it was “pressure to impose the law."

According to a statement released by the group, the protesters denounced alleged "pressure" from Paris on "Lebanese MPs, officials, and the government to force the adoption of the so-called financial hole law, which constitutes a blatant legalization of the theft of depositors’ funds and the erasure of their deposits."

Dozens of protesters were present, holding signs against the draft law intended to find solutions to the bank deficit of more than $80 billion created by the financial collapse of 2019.

The bill provides for returning funds to depositors through monthly payments for accounts below $100,000, while amounts above that would be converted into long-term financial instruments. The law aims to restructure the banking sector to meet International Monetary Fund (IMF) requirements, but it has been criticized for shifting losses onto depositors rather than banks and the state.

The bill still needs to be passed by Parliament, and President Joseph Aoun has already said he is prepared to refuse to promulgate it unless amendments are made to the version approved by the government.

The slogans of the protesters in front of the French Embassy specifically targeted four main parties responsible for the bill: Prime Minister Nawaf Salam, Finance Minister Yassine Jaber, Economy Minister Amer Bisat, and the IMF.

Throughout the speeches, participants emphasized that "national sovereignty is a red line and no country, whoever it may be, will be allowed to interfere in Lebanon’s internal affairs, especially in a financial and vital matter that affects the lives and dignity of more than a million Lebanese depositors."

On the very day the bill was approved by Cabinet, France called the vote a necessary first step to restore confidence in the banking system and put Lebanon back on a path to stability.

Egypt and the United States then followed suit. For months, Paris has continued to try to remove various obstacles to supporting Lebanon by seeking to establish a legislative base to reopen the way for credible negotiations with the IMF, then to hold the promised donor conferences.

To this end, its diplomats and President Macron’s special envoy, Jacques de Lajugie, have been making every effort to try to bring the various parties closer together on some still-critical issues.