They say the third time is a charm.
That is not proving to be the case for the third version of Lebanon's long-expected government economic recovery plan, aimed at addressing the country’s financial losses that exceed $70 billion and restructuring its insolvent banking sector.
The stakes are high. For depositors, locked out of their savings, it will lay out the mechanisms of restitution. Except for some well-connected Lebanese, most have lost all their life savings. For the banks, it will determine which will survive and which will be forced into bankruptcy.
It is also a condition to secure a much-needed $3 billion loan programme from the International Monetary Fund, a prerequisite for unlocking any foreign financing.
Despite the urgency of the situation, five years into a crisis labelled by the World Bank as one of the worst since 1850, which has pushed 80 per cent of the population into poverty, the government's economic recovery plan, which was met with staunch opposition, is not on the agenda of the Council of Ministers this Tuesday.
“As such, it is highly unlikely for the plan to be adopted in its current form, given the opposition it has faced,” Deputy Prime Minister Saade Chami, one of the plan's contributors, told The National.
Mr Chami said the 60-page draft law had drawn heavy criticism from various corners – the Association des Banques du Liban (ABL), economic organisations, MPs and some ministers – before it had even been debated.
“Some have criticised the draft law even before reading but they have done so on hearsay and before they had the chance to discuss it with its authors,” he said.
Dismissed as a Ponzi scheme, a fraudulent system in which funds from new investors are used to pay off earlier ones, the Lebanese economy – fuelled by exorbitant interests on deposits – completely collapsed in 2019 after decades of squandering of public funds.
Opponents and defenders of the recovery plan are clashing over how to divvy up the enormous bill of this unsustainable policy among stakeholders – the state, the central bank, shareholders and depositors.
Opponents of the plan argue that it is too lenient towards the state, which should bear the responsibility for misusing the funds lent by the financial sector.
Those who defend it say the state is financially broken and simply lacks the means to bail out depositors – at least for now.
“Any draft law is susceptible to changes and amendments, let alone a law that deals with very complicated and difficult issues such bank resolution and how to deal with the large financial gap that exists in the banking sector,” Mr Chami said.
“Having a plan, even if imperfect, that could be changed and amended is preferable to having none at all. But this requires joint and genuine efforts on the part of those who are responsible for it in the first place. One person alone cannot make that happen."
A ‘stillborn’ plan
The plan, crafted with the assistance of the central bank, Banque du Liban (BDL), was sent to ministers in February for their comments before a scheduled Council of Ministers meeting later that month.
The meeting was cancelled, however, and there has been no word since on when the proposal will be reviewed.
“The plan is stillborn,” Henri Chaoul, a former Finance Ministry adviser, told The National.
This resistance to much-needed reforms, he explained, has been coming from the same coalition of politicians and bankers united in one aim – to deny the colossal financial losses.
“Bankers don’t want to declare bankruptcy, while politicians resort to populism to delay facing the harsh truth,” he said.
“It's all about the attitude towards reforms. It's simple to shoot down any solution without offering an alternative."
The Lebanese elite's prevarications appear to have tested the patience of the IMF. Its representatives are scheduled to visit Lebanon in the first half of this year for the Article IV consultation, which is conducted annually for all member countries to assess their financial condition, although a date haas not been set.
Official sources told The National that this is related to security reasons, as a border conflict between Lebanon's Hezbollah militia and the Israeli military is raging in the south of the country.
But several informed sources said the IMF may skip the visit this year, deeming it pointless until tangible progress is achieved.
It is deja vu. In 2020, the plan of Hassan Diab, prime minister at the time, crashed and burnt, much like the government's plan in 2022.
“All these plans are cut from the same cloth,” Mr Chaoul said. "And they all stumble over the same hurdles."
But Lebanon is not circling back to square one: It is plunging deeper into crisis.
“The longer we delay, the more challenging the situation will become and the greater the losses. The faster we move with the reforms, the less time we need to recover deposits,” Mr Chami said.
“Time is of the essence and its passing is a loss for depositors. Past solutions are no longer up-to-date. What has been missing is the political courage to act decisively," a BDL source told The National.
Bailout, 'lirification', state assets
The latest plan says amounts below the protected threshold of $100,000 will be reimbursed to depositors gradually.
This accounts for about $20 billion of the $90 billion deposited at the central bank, said Jean Riachi, chief executive of the Lebanese Investment and Capital Bank.
Banks unable to return deposits will be restructured, including the resetting of their capital to zero.
As for the remaining $70 billion in deposits above $100,000, these will be removed from banks' balance sheets and reimbursed through various mechanisms.
These include bail-in, where a portion of the deposits is exchanged for equity participation; lirification, which means converting the funds into Lebanon's depreciating lira currency; and conversion into securities linked to a deposit restitution fund tied to state assets.
The 'deposit wipeout plan'?
The plan's adversaries have called it the “deposit wipeout plan”.
“The time of recovery and the threshold for protected deposits is not acceptable for depositors,” the BDL source said.
“They are aspects worth discussing, such as time of recovery for protected deposits and bailout mechanisms with are too vague, but the plan should not be outright dismissed,” Mr Chaoul stressed.
For the Association des Banques du Liban, the banking lobby, deposit recovery could be maximised if the state dips into its pocket.
“Banks shoulder the burden of the current plan, with no real expense for the BDL or the Lebanese state,” a leaked document attributed to ABL said.
Mr Riachi said: “Banks argue that the state should be responsible for all deposits. But the real reason is that there's not even $20 billion in the system, maybe for just four or five banks."
“Most of the banks do not have the funds to pay the amount protected, so they play on politicians' populism, all under the guise of sacred deposits."
ABL told The National it would be making no official comment on the plan.
But it has long argued that the state should bear the losses. The crisis, the banking lobby claims, did not arise from banks' risky investments but from a "systemic crisis" tied to state policies, which led to deficit accumulation, and the BDL, which drained its reserves to prop up the exchange rate.
“We never denied the state's responsibility and the need for it to contribute to the solution,” Mr Chami said. "But it can’t contribute to the extent that is being demanded given the dire fiscal situation.
“We keep saying that the contribution of the state could increase with time once we put all the necessary reforms in place."
Billions of dollars in 'illegitimate deposits'
Another point that has fuelled outrage within the banking sector is the proposed distinction between legitimate and illegitimate deposits.
“The current financial losses are indicative as it assumes that all deposits must be protected but it does not account for illegitimate deposits,” Lebanese lawyer Karim Daher said.
“This refers to funds acquired through illegal means, such as drug trafficking, terrorism financing, fraudulent bankruptcy, embezzlement, smuggling, extortion, insider trading … as defined by Lebanon's anti-money laundering regulations."
The plan sets the threshold for proving wealth authenticity at deposits of more than $500,000 and at $300,000 for public officials.
“Cases where deposits are not protected include situations of acting as nominees for wrongdoers and potentates, as well as money resulting from tax evasions or dormant accounts that are supposed to revert to the Lebanese state, partially or totally depending on the due diligence of the banks,” Mr Daher explained.
“Estimating is tough but we could recover billions.
“Not only would it narrow the deposit gap, but also expose Pandora's boxes of collusion among bankers, politicians and entrepreneurs."
The issue of legitimate deposits is “good from a moral standpoint” but dismissed as “very complex” in the leaked ABL document.
“According to actual international standards, there are not technical excuses not to track funds in Lebanese banks. The audit could technically be done even before a plan is adopted,” the BDL source said.
Mr Chaoul added: “For years, Lebanese have demanded accountability. Finally, we have a plan heading in that direction and the same so-called elite is now sabotaging it.”
CREW
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ERajesh%20A%20Krishnan%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3ETabu%2C%20Kareena%20Kapoor%20Khan%2C%20Kriti%20Sanon%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203.5%2F5%3C%2Fp%3E%0A
APPLE IPAD MINI (A17 PRO)
Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits
Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine
Storage: 128/256/512GB
Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4
Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps
Biometrics: Touch ID, Face ID
Colours: Blue, purple, space grey, starlight
In the box: iPad mini, USB-C cable, 20W USB-C power adapter
Price: From Dh2,099
Jawan
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EAtlee%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Shah%20Rukh%20Khan%2C%20Nayanthara%2C%20Vijay%20Sethupathi%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E4%2F5%3C%2Fp%3E%0A
BEETLEJUICE BEETLEJUICE
Starring: Winona Ryder, Michael Keaton, Jenny Ortega
Director: Tim Burton
Rating: 3/5
The%20Last%20White%20Man
%3Cp%3EAuthor%3A%20Mohsin%20Hamid%C2%A0%3C%2Fp%3E%0A%3Cp%3E192%20pages%C2%A0%3C%2Fp%3E%0A%3Cp%3EPublished%20by%3A%20Hamish%20Hamilton%20(UK)%2C%20Riverhead%20Books%20(US)%3C%2Fp%3E%0A%3Cp%3ERelease%20date%3A%20out%20now%20in%20the%20US%2C%20August%2011%20(UK)%3C%2Fp%3E%0A
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Essentials
The flights
Etihad (etihad.ae) and flydubai (flydubai.com) fly direct to Baku three times a week from Dh1,250 return, including taxes.
The stay
A seven-night “Fundamental Detox” programme at the Chenot Palace (chenotpalace.com/en) costs from €3,000 (Dh13,197) per person, including taxes, accommodation, 3 medical consultations, 2 nutritional consultations, a detox diet, a body composition analysis, a bio-energetic check-up, four Chenot bio-energetic treatments, six Chenot energetic massages, six hydro-aromatherapy treatments, six phyto-mud treatments, six hydro-jet treatments and access to the gym, indoor pool, sauna and steam room. Additional tests and treatments cost extra.
3%20Body%20Problem
%3Cp%3E%3Cstrong%3ECreators%3A%3C%2Fstrong%3E%20David%20Benioff%2C%20D%20B%20Weiss%2C%20Alexander%20Woo%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EBenedict%20Wong%2C%20Jess%20Hong%2C%20Jovan%20Adepo%2C%20Eiza%20Gonzalez%2C%20John%20Bradley%2C%20Alex%20Sharp%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
MATCH INFO
Inter Milan 2 (Vecino 65', Barella 83')
Verona 1 (Verre 19' pen)
Temple numbers
Expected completion: 2022
Height: 24 meters
Ground floor banquet hall: 370 square metres to accommodate about 750 people
Ground floor multipurpose hall: 92 square metres for up to 200 people
First floor main Prayer Hall: 465 square metres to hold 1,500 people at a time
First floor terrace areas: 2,30 square metres
Temple will be spread over 6,900 square metres
Structure includes two basements, ground and first floor
The Gentlemen
Director: Guy Ritchie
Stars: Colin Farrell, Hugh Grant
Three out of five stars
SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
%3Cp%3E%3Cstrong%3EProcessor%3A%3C%2Fstrong%3E%20Apple%20M3%2C%208-core%20CPU%2C%20up%20to%2010-core%20CPU%2C%2016-core%20Neural%20Engine%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EDisplay%3A%3C%2Fstrong%3E%2013.6-inch%20Liquid%20Retina%2C%202560%20x%201664%2C%20224ppi%2C%20500%20nits%2C%20True%20Tone%2C%20wide%20colour%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMemory%3A%3C%2Fstrong%3E%208%2F16%2F24GB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStorage%3A%3C%2Fstrong%3E%20256%2F512GB%20%2F%201%2F2TB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EI%2FO%3A%3C%2Fstrong%3E%20Thunderbolt%203%2FUSB-4%20(2)%2C%203.5mm%20audio%2C%20Touch%20ID%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EConnectivity%3A%3C%2Fstrong%3E%20Wi-Fi%206E%2C%20Bluetooth%205.3%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBattery%3A%3C%2Fstrong%3E%2052.6Wh%20lithium-polymer%2C%20up%20to%2018%20hours%2C%20MagSafe%20charging%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECamera%3A%3C%2Fstrong%3E%201080p%20FaceTime%20HD%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EVideo%3A%3C%2Fstrong%3E%20Support%20for%20Apple%20ProRes%2C%20HDR%20with%20Dolby%20Vision%2C%20HDR10%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAudio%3A%3C%2Fstrong%3E%204-speaker%20system%2C%20wide%20stereo%2C%20support%20for%20Dolby%20Atmos%2C%20Spatial%20Audio%20and%20dynamic%20head%20tracking%20(with%20AirPods)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EColours%3A%3C%2Fstrong%3E%20Midnight%2C%20silver%2C%20space%20grey%2C%20starlight%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EIn%20the%20box%3A%3C%2Fstrong%3E%20MacBook%20Air%2C%2030W%2F35W%20dual-port%2F70w%20power%20adapter%2C%20USB-C-to-MagSafe%20cable%2C%202%20Apple%20stickers%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh4%2C599%3C%2Fp%3E%0A
NEW%20PRICING%20SCHEME%20FOR%20APPLE%20MUSIC%2C%20TV%2B%20AND%20ONE
%3Cp%3E%3Cstrong%3EApple%20Music%3Cbr%3EMonthly%20individual%3A%20%3C%2Fstrong%3E%2410.99%20(from%20%249.99)%3Cstrong%3E%3Cbr%3EMonthly%20family%3A%20%3C%2Fstrong%3E%2416.99%20(from%20%2414.99)%3Cstrong%3E%3Cbr%3EIndividual%20annual%3A%20%3C%2Fstrong%3E%24109%20(from%20%2499)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EApple%20TV%2B%3Cbr%3EMonthly%3A%20%3C%2Fstrong%3E%246.99%20(from%20%244.99)%3Cstrong%3E%3Cbr%3EAnnual%3A%20%3C%2Fstrong%3E%2469%20(from%20%2449.99)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EApple%20One%3Cbr%3EMonthly%20individual%3A%20%3C%2Fstrong%3E%2416.95%20(from%20%2414.95)%3Cstrong%3E%3Cbr%3EMonthly%20family%3A%20%3C%2Fstrong%3E%2422.95%20(from%20%2419.95)%3Cstrong%3E%3Cbr%3EMonthly%20premier%3A%20%3C%2Fstrong%3E%2432.95%20(from%20%2429.95)%3C%2Fp%3E%0A
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
Banthology: Stories from Unwanted Nations
Edited by Sarah Cleave, Comma Press
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
SCHEDULE
Saturday, April 20: 11am to 7pm - Abu Dhabi World Jiu-Jitsu Festival and Para jiu-jitsu.
Sunday, April 21: 11am to 6pm - Abu Dhabi World Youth (female) Jiu-Jitsu Championship.
Monday, April 22: 11am to 6pm - Abu Dhabi World Youth (male) Jiu-Jitsu Championship.
Tuesday, April 23: 11am-6pm Abu Dhabi World Masters Jiu-Jitsu Championship.
Wednesday, April 24: 11am-6pm Abu Dhabi World Professional Jiu-Jitsu Championship.
Thursday, April 25: 11am-5pm Abu Dhabi World Professional Jiu-Jitsu Championship.
Friday, April 26: 3pm to 6pm Finals of the Abu Dhabi World Professional Jiu-Jitsu Championship.
Saturday, April 27: 4pm and 8pm awards ceremony.
Zayed Sustainability Prize
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
Martin Sabbagh profile
Job: CEO JCDecaux Middle East
In the role: Since January 2015
Lives: In the UAE
Background: M&A, investment banking
Studied: Corporate finance
The specs
Engine: 2.4-litre 4-cylinder
Transmission: CVT auto
Power: 181bhp
Torque: 244Nm
Price: Dh122,900
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
LA LIGA FIXTURES
Friday
Granada v Real Betis (9.30pm)
Valencia v Levante (midnight)
Saturday
Espanyol v Alaves (4pm)
Celta Vigo v Villarreal (7pm)
Leganes v Real Valladolid (9.30pm)
Mallorca v Barcelona (midnight)
Sunday
Atletic Bilbao v Atletico Madrid (4pm)
Real Madrid v Eibar (9.30pm)
Real Sociedad v Osasuna (midnight)
ONCE UPON A TIME IN GAZA
Starring: Nader Abd Alhay, Majd Eid, Ramzi Maqdisi
Directors: Tarzan and Arab Nasser
Rating: 4.5/5
The five pillars of Islam
Liverpool 4-1 Shrewsbury
Liverpool
Gordon (34'), Fabinho (44' pen, 90' 3), Firmino (78')
Shrewsbury
Udoh (27'minutes)
Man of the Match: Kaide Gordon (Liverpool)
Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East