Lebanon's banks resumed operations for the first time in two weeks yesterday after protests prompted Prime Minister Saad al-Hariri to resign, as queues formed, customers faced new restrictions on remittances and withdrawals from dollar accounts. Beirut, protesting the policy of bank loans and linking the economy to the dollar.
In detail, witnesses said that an hour after banks opened, dozens of people were waiting in some banks in Beirut and other cities. The numbers were lower in other banks.
The Association of Banks in Lebanon praised the "responsible" actions of the people. Three traders said the Lebanese pound had risen against the dollar in the parallel market that has emerged in recent months.
The Central Bank of Lebanon has vowed not to impose restrictions on the movement of funds when banks resume operations, measures that could hamper the currency and investment flows that Lebanon urgently needs to weather its worst economic crisis since the civil war.
Although there were no formal restrictions, clients and banks said banks told customers they could only transfer money abroad if they were to repay loans, for education, for health care, to support families or business commitments.
Customers also face a new cap on dollar amounts they can withdraw from US currency accounts.
Asked about the steps banks are taking, the president of the Association of Banks in Lebanon, Salim Sfeir, said: "I would not describe them as restrictions, but efforts by banks to accommodate all customers, taking into account the pressure of a two-week closure."
"We are ready to modify any action taken once the situation in the country returns to normal," he told Reuters.
Walid Iskandarani, who was trying to cash a check for $ 4,538, said he was told he could get just $ 2,500 of the money immediately. "The situation is not normal."
Another client was informed that he needed a letter from a bank abroad to transfer mortgage payments out of the country.
Another said he paid a $ 5 fee to withdraw $ 1,000 from his Bloom dollar account and was told that the maximum weekly withdrawal from the account was $ 2,500.
At two other banks, employees said customers demanding a withdrawal of several thousand dollars would have no problems, but those seeking to withdraw larger amounts would have to prove they were for needs such as tuition fees or importing goods.
In Beirut's Mazraa Corniche, Rana Sharif said she was waiting at a branch of Bank Audi for an hour to withdraw funds to pay the salaries of 13 of its employees. "I'm worried they won't let me withdraw the full amount," she said.
A number of clients said they expected the situation to deteriorate.
"There is not much panic," said a customer with a card showing his number 17 in a row outside Byblos Bank branch in Zouk Mosbeh, north of Beirut, where he waited for about 20 people at the time the bank opened. "I thought it would be more."
The President of the Association of Banks in Lebanon said in a statement that the people behave responsibly and civilized manner, and that the national sense was evident in the people's desire to protect the national economy.
Banks cited security concerns for employees and customers over their decision to remain closed in the past two weeks. Bankers and analysts also cited fears that savers would scramble to withdraw or transfer money once banks reopened.
The slowdown in the flow of funds to Lebanon has led to unprecedented economic pressures since the 1975-1990 civil war. A parallel market for the Lebanese pound, pegged at $ 1507.5 to the dollar, arose 20 years ago.
In the meantime, a group of citizens stormed the building of the Association of Banks in Beirut and closed the main entrance, in protest against the policy of bank loans, linking the economy to the dollar, and demanding the recovery of looted funds by banks.
A group of protesters entered the building of the Association of Banks in the Gemayzeh area in Beirut yesterday and closed the main entrance. Personal, so that the poor classes are not exploited with high interest, freeing the economy from the dollar peg, and the recovery of money looted by banks, and illegal profits ».
Security forces drove the protesters out of the Association of Banks building in Gemmayzeh and arrested four of them. They also arrested a young man who approached the car in which the arrested youths were placed.
The Association of Banks on Thursday, called on customers to take into account «the interest of the country», in light of the great fears of the demand of large depositors and small to withdraw their deposits. A statement issued by the Association, it hopes that «customers understand the status quo, and respond positively to serve their interests and the interests of the country at this extraordinary stage».
The protests did not abate after the speech of Lebanese President Michel Aoun yesterday evening, hinting his support for the formation of a technocrat government, indicating the possibility of reaching a compromise to form a new government that can introduce much-needed reforms.
Protesters blocked at night a number of roads in the Bekaa in eastern Lebanon and in the capital Beirut and in the north, and security forces have worked since yesterday morning to reopen roads in the capital Beirut.
Prime Minister Saad Hariri announced on Tuesday the resignation of his government «in response to the will of many Lebanese who took to the streets to demand change, and a commitment to the need to provide a safety net to protect the country at this historic moment», after 13 days of popular protests.
Aoun has not yet been invited to start parliamentary consultations to name a prime minister, and unofficial information has been made available about the possibility of calling next week.
- Fears of stampede
Savers to pull
Money or transfer
Abroad.