Depositors in front of a branch of Fransabank in Beirut, September 26, 2022. Photo by Joseph Eid/AFP
Former Fransabank client Ayad al-Gharabaoui Ibrahim confirmed to L’Orient-Le Jour on Tuesday that he had cashed the check he received from the Beirut Enforcement Bureau, concluding enforcement proceedings against the bank. The payment, obtained through a forced court-ordered execution and covering the full amount of his deposits, marks a first in Lebanon since the onset of the country's economic and financial crisis in 2019.
"The check has been cashed. I received what I was owed, and the case is closed," said the Egyptian national living in Lebanon, declining to provide further details.
According to Ibrahim, Fransabank issued a check to the Beirut Enforcement Bureau, which deposited it in its own account at BLOM Bank before issuing, on July 16, a "fresh" dollar check in Ibrahim's name for $47,911.67. The amount covers the original deposit plus accrued interest. The Lebanese Lira check previously mentioned by the Mouttahidoun collective, which represented him, covered a separate amount equivalent to about $335. That payment did not go to the depositor but was used to cover legal fees.
On July 7, Fransabank deposited immediately payable checks with the Beirut Enforcement Bureau covering the deposit, interest, and fees. The bureau then transferred them to Ibrahim on July 16. Ibrahim told L'Orient-Le Jour that he signed a withdrawal from the proceedings that same day, formally bringing the case to an end.
The restitution ends a legal battle that lasted more than four and a half years. It began in late 2021 after Fransabank refused his request to withdraw about $10,000 for medical expenses, then closed his accounts in exchange for a check in "lollars" (deposits effectively trapped in banks since 2019 and redeemable only at an exchange rate well below the market value).
brahim's case comes as the issue of illegally frozen deposits remains unresolved. On Tuesday, depositors protested in in Beirut and Mkalles, in the suburbs, where demonstrators smashed bank branch windows and set ATMs and tires on fire, while a bill to restructure the banking sector remains under negotiation.
This article was originally published in French in L'Orient-Le Jour.
