Financial Prosecutor Says Assets Freeze a Warning to Banks
Financial Prosecutor Ali Ibrahim on Thursday said his decision to freeze the assets of 20 Lebanese banks is “not only aimed at protecting depositors but also at rattling the banks and telling them that none of them is above accountability.”
In a phone interview with the National News Agency, Ibrahim voiced surprise about the “exaggerated uproar” over his decision, noting that “this decision is like the other judicial files that we are handling.”
“Preventing the disposal of assets simply means that it will be prohibited to dispose of shares, real estates, cars, properties and buildings,” Ibrahim added.
As for the next step, the prosecutor said that he will pursue the investigations and request further papers and documents.
Ibrahim had earlier on Thursday ordered an asset freeze for 20 banks and their board directors, in the latest move targeting the crisis-hit country's under-fire banks.
Lebanon has been gripped since October 17 by mass protests against the political class and banking sector, even as it faces its worst economic crisis in decades.
Banks have since September imposed increasingly tight limits on dollar withdrawals and transfers abroad to tackle a severe liquidity crisis, sparking frustration among ordinary depositors.
Ibrahim's move comes after the prosecutor separately called in 15 banks on Monday over more than 2 billion dollars in capital flight despite the restrictions in the two months after the start of the protests.
Lebanon is currently facing its worst economic crisis since its 1975-1990 civil war.
The value of the Lebanese pound has plummeted on the black market, prices have risen, and many businesses have been forced to slash salaries, dismiss staff or close.
Lebanon is one of the most indebted countries in the world, with a public debt equivalent to 150 percent of its gross domestic product (GDP).
The country is now under pressure to pay a $1.2 billion Eurobond maturing on March 9, with a decision expected on Saturday on whether or not to default.
Source: Naharnet
| Copyright © 2012 Naharnet.com. All Rights Reserved. | https://naharnet.com/stories/en/269821 |