Seven years after the onset of the worst financial crisis in Lebanon's history, depositors returned to the streets of Beirut on Tuesday to protest against the continued freezing of their savings amid deteriorating economic conditions.
Demonstrators gathered outside three banks in the Lebanese capital, where they lit fires and smashed glass doors, expressing anger after years of being denied full access to their deposits.
The protest was organised by depositors' groups, who said their message to Lebanon's government and bank executives was “seven years of frozen deposits is more than enough”. Many Lebanese continue to struggle with the deep financial crisis compounded by the country's recent conflicts.
The demonstration began in Martyrs' Square in central Beirut before protesters marched to the Horsh Tabet area of Sin El Fil, where they targeted the headquarters of three banks – Byblos Bank, Bank of Beirut and Blom Bank, as well as the home of the chairman of the Association of Banks in Lebanon.
Asked why the protests had resumed after a period of relative calm, the group said the past two years in Lebanon had been dominated by the war with Israel, but that it was still organising regular protests to keep pressure on officials over depositors' demands.
The association said Tuesday's demonstration reflected the growing despair among Lebanese, warning that further protests could follow until depositors are given access to their frozen savings.
Lebanese banks imposed capital controls on their clients in 2019 after the onset of the financial crisis. What began as weekly limits on US dollar withdrawals developed into tight monthly caps or complete freezes over the following years.
The economic collapse, from which the country has yet to recover, was blamed on decades of financial mismanagement and corruption by Lebanon's ruling elite.
The economy kept declining during the Covid-19 pandemic and the 2020 Beirut port explosion. But the final blow came in March, when fighting resumed between Israel and Hezbollah against the backdrop of the wider regional conflict, further damaging Lebanon's fragile economy.
Recent forecasts suggest that Lebanon's GDP could contract by between 7 and 16 per cent this year. Meanwhile, inflation data shows prices rising by 19 per cent year on year, with energy and transport recording the steepest increases.
In the absence of social safety nets, Lebanese citizens are left to bear the brunt of the country's compounding crises.
Last year, Lebanon's Economy Minister Amer Bisat said depositors would receive their funds “over time”, as part of an overhaul of the Lebanese financial system. But financial analysts at the time told The National that the possibility of Lebanese depositors soon gaining access up to $93 billion stuck in the country's banks was slim to none.
