UK court orders Lebanese banks to pay $4 mln to saver – Reuters

SGBL did not instantly react to an ask for comment.
Lebanons monetary system collapsed in 2019 after years of unsustainable monetary policies, corruption and waste. Banks enforced tight controls on accounts, including a de facto ban on withdrawals of dollar-denominated deposits and limits on withdrawals in local currency.
These controls were never formalised with legislation and have been challenged in global and regional courts, with blended results.
A UK court in December ruled in favour of a Lebanese bank in a case brought by a depositor, thinking about the bank had discharged its financial obligation to the complainant by issuing checks for the value of his deposits.
Numerous Lebanese banks have resorted to discharging dollar-denominated funds via lenders cheques which can not be cashed out in dollars and are rather offered on the marketplace at about a quarter of their worth.
Simply a week prior, a French court had actually ruled in favour of a saver residing in France in a case she brought against a bank which had actually likewise provided look for her account balance, stating the unilateral move by the bank, opposed by the complaintant, indicated the bank had not satisfied its commitments.

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BEIRUT, March 1 (Reuters) – A London court has actually bought two Lebanese banks to pay a depositor $4 million of his money secured Lebanons maimed banking system by casual capital controls in location given that a monetary crisis in 2019, the first such judgment in Britain.
The High Court of Justice, Queens Bench Division, bought Bank Audi and SGBL to make the payments, amounting to about $1.1 million and $2.9 million respectively, to claimant Vatche Manoukian by March 4, a copy of the ruling seen by Reuters stated.
” Bank Audi will follow the judgment of the British court,” a Bank Audi official told Reuters.

A woman using a face mask walks by a closed branch of Bank Audi after Lebanon declared a state of emergency over the spread of the coronavirus, in Sidon, Lebanon, March 17, 2020. REUTERS/Ali Hashisho

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Reporting by Timour Azhari and Tom Perry
Modifying by Mark Potter
Our Standards: The Thomson Reuters Trust Principles.

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