Lebanese banks to halt strike temporarily at request of caretaker Prime Minister Najib Mikati

Lebanon’s banks have agreed to pause their ongoing strike for a week, following a request from the country’s caretaker prime minister. The decision comes after the prime minister took action against a judge investigating the financial institutions.

Since February 7, the banks have been on strike after convening to address the mounting legal challenges they’ve encountered since Lebanon’s economy started deteriorating over three years ago.

During the meltdown, depositors have faced strict limitations on withdrawing and transferring their funds, leading many to turn to lawsuits against their banks or even resorting to holding them accountable for access to their own money.

The ABL said it had decided to halt the strike “based on the wish of the prime minister,” so depositors would be able to access banking services.

Caretaker Premier Najib Mikati on Tuesday said to Lebanese broadcaster Al-Jadeed that he had been in touch with the banking association and expected the strike to end within 48 hours, without offering an explanation.

Mikati and Interior Minister Bassam Mawlawi on Wednesday moved to block the work of Judge Ghada Aoun, who has been investigating Lebanon’s financial sector since it collapsed in 2019 following decades of corrupt government, profligate spending and financial mismanagement.

Mikati sent a letter to Mawlawi on Wednesday, a copy of which was seen by Reuters, asking that security forces “not carry out decisions issued by” Aoun as they were “an overstepping of authority”.

Mawlawi issued a directive, seen by Reuters, on the same day, telling Lebanon’s General Security directorate and the Internal Security Forces not to act on Aoun’s orders.

Aoun responded on Twitter that the moves represented “a total breakdown of justice in this poor country.” She called it “an unprecedented interference in the work of the judiciary”.

(Reuters)