BEIRUT — More
than two years have passed since the
financial crisis in Lebanon locked out
depositors from accessing the bulk of their US dollar funds in
Lebanese banks.
Instead, they have received a meager monthly stipend, withdrawn in Lebanese
lira at an unfavorable rate, or they were restricted to withdrawing $400 in
cash each month, and another $400 in liras, also at an unfavorable rate.
اضافة اعلان
The
crisis and the political deadlock continue to drag on with no solution in sight
for restructuring both the public debt and the banking sector. In
fact, authorities are yet to quantify the exact losses sustained by the
financial system, with widely varying figures being suggested.
A screenshot from the Depositors Union website.
(Photo: Depositors Union)
Under
these circumstances, and with the lack of responsiveness from the state, the
banks, and the judiciary, the Depositors Union was set up in Lebanon as an
umbrella organization to represent depositors in Lebanon and abroad.
The
union’s purpose is to pursue further legal and political avenues, to put
pressure on banks, bank shareholders, and politicians with the help of
international donor countries to recover people’s money.
Monster
bankers
“We are
facing monsters. Our chances are getting slimmer and slimmer by the day,” Fouad Debs, attorney and co-founder of the
Depositors Union told
Jordan News regarding
the fight against the Lebanese banking system and their political allies. “But
there is a light at the end of the tunnel. We cannot accept that (bankers and
bank shareholders and politicians) live the good life while they leave 95
percent of the Lebanese people to rot,” Debs added.
“We are
the light at the end of the tunnel,” said Hady Jaafar, a journalist and PR
coordinator at the union. “The activists fighting against the bankers and
corrupt politicians every day are that light. It’s a risk we took, but as we
see it, we have no other option. They stole our money,” Jaafar added.
Debs
said that the banks are powerful and have the media and many politicians on
their side. “They pay big-name journalists to defend them and have high ranking
judges and civil servants on their side too,” Debs said, adding that bankers
and politicians have money and property and other assets tucked away abroad.
“Our
focus is on pursuing criminal cases against the banks and bankers, here and
abroad. We are going to court in Switzerland, the UK, France, and in the US,”
Debs said. He lamented that there is no international court for financial
crimes as there is for genocide.
The
Depositors Union believes that any acceptable solution to the financial
situation must be based upon five basic pillars: fair cost distribution between
the state, the banks and their shareholders, and depositors; public debt
restructuring; inclusiveness, which is why the union is asking for a seat at
the negotiating table with the International Monetary Fund (IMF) with the
government and banks; transparency; and accountability.
Seeking
help from the Europeans
A
delegation from the union met with
German Parliament members and members of the
European Parliament to convince them to place sanctions on Lebanese banks and
bank shareholders.
“They
gave us promises that they would lobby in parliament to put sanctions (on
banks),” said Jaafar but questioned whether the MPs and MEPs would actually
follow through. “We didn’t get the feeling they were eager to put sanctions on
banks; they didn’t seem willing to take direct action now. They seemed to be
waiting for a political resolution in the region,” Jaafar said.
“We
also launched a campaign aimed at the World Bank to pay the promised aid to
needy Lebanese families in dollars, instead of in lira,” Jaafar said, adding
that the Lebanese central bank had wanted to take the dollars and payout to
families in the ever-fluctuating Lebanese lira. The union had a meeting with
the
World Bank’s MENA regional director, who committed not to allow payment in lira.
Jaafar
said that the union is undertaking a new campaign in Europe targeting the media
to explain what happened to Lebanese depositors and how their money was stolen
by the banks.
Debs
said they have visited several European embassies in Lebanon and urged them to
put certain Lebanese bankers and politicians on a watchlist or place sanctions
against them. “Our campaign is similar to the
Palestinian’s Boycott, Divestment, Sanctions (BDS) campaign, in that we urge countries not to deal
with these people anymore,” he said.
Fraudulent
maneuvers
Since
2016, approximately, Lebanese banks had been intensifying their targeting of
Lebanese living in the diaspora, trying to collect as many deposits from them
as they could. “The (financial) crisis started in 2016, but the public did not
know of it. The media campaign at the time was pumping up the reputations of
the banks and (Central Bank Governor Riad) Salameh. The Americans gave him an
award. Banks went to the four corners of the world to convince the Lebanese
abroad to put their money with them,” Debs said.
He said
that some banks made depositors sign up for credit-linked deposits, which meant
that banks would decide if they returned depositors’ money as Eurobonds,
central bank certificates of deposit (CDs), or cash.
“Banks
were pushing people to get these products (bonds, CD’s) instead of cash
deposits, to make it harder to return the money. The basis was fraud, (the
banks) knew what was going on, these were fraudulent maneuvers,” Debs said,
adding that all the ads in the media, the banks paying experts to say what they
wanted people to hear so that banks could get more and more deposits.
Debs
said that in the EU, the above practice is considered a crime according to
their consumer protection law, and in fact, one Lebanese bank was ordered by a
French court to pay a depositor his money back after he had filed suit against
the bank. But, Debs warned that it’s not as easy as all that as some lawsuits
have failed.
Debs
also said that they realize how powerful the banks are, which is why lobbying
governments abroad is so important, especially from the Lebanese diaspora. He
said that the Association of Banks in Lebanon has near-total impunity.
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