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Lebanese Bank Audi: British court orders payment of $ 4 million to one depositor harms others

Lebanese Bank Audi: British court orders payment of $ 4 million to one depositor harms others

Lebanese bank Audi on Wednesday said it would comply with a court order in London and pay $ 4 million to one of the depositors of funds held by the Lebanese Society General Bank of Lebanon in the Lebanese banking system, causing harm to others. Depositors.
On February 28, the court ordered the two banks to pay $ 1.1 million and $ 2.9 million, respectively, to plaintiff Vache Manokian by March 4.
With no capital control law in Lebanon, banks began to impose informal restrictions on withdrawals and transfers abroad as the country’s financial system collapsed in 2019 after years of corruption, waste and unsustainable monetary policies.
These restrictions have not been formalized by legislation and have been challenged in domestic and international courts with mixed results.
Bank Audi said: “The large number of cases filed by depositors against banks in Lebanese and foreign courts is a direct result of the mismanagement of the Lebanese crisis since October 2019, especially as a result of the inability to issue a law. To control foreign financial transactions.
The bank indicated it would like to comply with the British order, but will consider its options on appeal.
Deputy Prime Minister HE al-Shami said he hoped the bill would be approved soon.
He told Reuters that there was an urgent need to pass a new capital law before the final court ruling.
According to Bank Audi, UK-based finance depositors (can) withdraw their full deposit at the expense of all other depositors who have no right or opportunity to make claims abroad. This fact will lead to a drastic reduction in the funds available to them.
Manokian’s lawyer said the decision recognized “his client’s legal right to transfer his money outside Lebanon.”
Attorney Graham Scheer said: “The first case related to the Lebanese financial crisis was successfully brought to the UK.
Societe Generale de Banque du Liban did not respond to requests for comment.
The enactment of a capital control law is a basic requirement that Lebanon must meet to make progress on IMF talks for a relief package.
(Reuters)

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