Central Bank Governor: By End of 2026, $8.1 Billion Will Be Returned to Depositors

Lebanon's Central Bank Governor Karim Sayed confirmed that work on the financial restructuring law and deposit recovery is ongoing, with positive amendments being introduced, noting that the Central Bank of Lebanon is following this path as an essential part of its responsibility. This took place during a meeting held at the Ministry of Finance, attended by Ministers of Finance and Economy and Trade Ammar al-Bassas, representatives from the Presidency and the Council of Ministers, Central Bank Governor Karim Sayed, and relevant departments within the Ministry of Finance—including tax, public debt, budget, treasury, imports, customs, and real estate administrations—as well as representatives from concerned institutions and the IMF mission, led by its head Ernesto Riga and accompanying technical team.

Responding to a question about the steps the Central Bank of Lebanon is taking before and after the law’s enactment, Sayed clarified that the bank continues preparing and monitoring the file, emphasizing that this government is addressing the crisis seriously and that the current Central Bank is advancing on the reform path.

He pointed out that the Central Bank of Lebanon is examining feasible ways to repay deposits in a rational manner, while simultaneously ensuring sufficient liquidity for the financial system, stressing that work will not halt pending legal approval.

He noted that by the end of 2026, $8.1 billion will have been returned to depositors under circulars 158 and 166, underscoring that the central bank continues to follow depositors’ hardships and work toward resolving the crisis.

When asked about a clear mechanism for handling deposits, Sayed affirmed that a mechanism exists, but clarified that the scale and complexity of the crisis demand a wise and rational approach based on commitments that can be fulfilled, avoiding promises to depositors that cannot be met.

He stressed that the goal is to achieve a feasible solution that preserves institutional credibility toward depositors, emphasizing that cautious pacing in certain steps ensures that commitments made to people are realistic and fulfillable.