Miqati Considers 'Show-Off' Moves against Banks 'Incorrect'

The assets of Fransabank were seized and all monetary operations were suspended and safes and registers were sealed with red wax, after a depositor filed a lawsuit against the bank.

Earlier this week, Judge Ghada Aoun had also frozen the assets of five of Lebanon’s largest banks and those of their board of directors as she investigates possible transfers of billions of dollars aboard during the country’s economic meltdown.

"This is not right," Prime Minister Najib Miqati said Wednesday, describing what is happening as a "show-off."

"This boastful method is dangerous," Miqati said.

He added that it would affect what remains of trust in the Lebanese banking system.

"I fear that matters might develop into dire consequences," Miqati said.

Lebanese banks have imposed informal capital controls since the economic crisis began in October 2019 after decades of corruption and mismanagement by the country’s political class. Since then, people do not have full access to their savings and those who withdraw cash from their U.S. dollar accounts get an exchange rate far lower than that of the black market.

Judge Aoun's move this week came days after she imposed travel bans on the directors of the five banks. Local TV stations said the travel bans were precautionary as auditors look into transfers by the banks worth $5 billion.

In January, Aoun also imposed a travel ban on Lebanon’s central bank governor after a corruption lawsuit accused him of embezzlement and dereliction of duty during the crisis.