According to Lebanese Deputy Prime Minister Saadeh al-Shami, Lebanon’s state and central bank have both been bankrupted.
When asked by a news channel if the state had gone bankrupt like the Banque du Liban, Al-Shami replied, “Yes, both have gone bankrupt. And we will try to reduce losses for the people.”
He stated that the state, the Banque du Liban, the banks, and the depositors will all share in the losses.
“There are no disagreements about the distribution of losses,” he added.
Late last year, the Lebanese currency began to plummet, and since then, the country has been experiencing a severe economic crisis, including fuel and medical supply shortages.
The value of the Lebanese pound has plummeted by 90 percent, making it difficult for the population to afford necessities like food, water, health care, and education, while fuel shortages cause widespread power outages.
“The country’s situation cannot be ignored,” said Al-Shami, and thus, bank withdrawals cannot be open to everyone.
“This is not a normal situation,” he said later.
Foreign currency withdrawals have been severely restricted in Lebanon since 2019 because of the country’s ongoing economic crisis.