A London court has ordered two Lebanese banks to pay a depositor $4 million of his money, which was locked in Lebanon’s banking system by capital controls in place since a financial meltdown in 2019.
It was the first such ruling in Britain.
The High Court of Justice, Queen’s Bench Division, ordered Bank Audi and SGBL to make payments of about $1.1m and $2.9m to claimant Vatche Manoukian by March 4, Reuters reported.
“Bank Audi will abide by the ruling of the British court,” an official from the lender said.
SGBL did not immediately respond to a request for comment.
Lebanon’s financial system collapsed in 2019 after years of unsustainable financial policies, corruption and waste.
Banks imposed tight controls on accounts, including an informal 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 local and international courts, with mixed results.
A UK court in December ruled in favour of a Lebanese bank in a case brought by a depositor.
It ruled that the bank had discharged its debt to the plaintiff by issuing cheques for the value of his deposits.
Many Lebanese banks have resorted to paying dollar-denominated funds through bankers’ cheques, which cannot be cashed out in dollars and are instead sold on the market at about a quarter of their value.
A week earlier, a French court ruled in favour of a saver living in France in a case she brought against a bank that issued cheques for her account balance.
The ruling said the move by the bank, which was opposed by the claimant, meant the lender had not fulfilled its obligations.
US appeals court says lawsuit against Lebanese bank can proceed
A US court of appeals has ruled that cases against Lebanese commercial banks can be tried outside Lebanon, paving the way for more cases by depositors seeking to unlock their frozen funds. The court decision, issued on Thursday in a case brought by Lebanese depositors...
2023 Hyundai Elantra Hybrid will surprise you (review)
We are living in the age of cynicism, when everyone seems jaded, as if nothing surprises us anymore. So, when something does deliver more than you’d expect, it’s a genuine delight. Such is the case with 2023 Hyundai Elantra Hybrid Limited compact sedan, starting...
Robert Oppenheimer, father of the atomic bomb, wrongly stripped of security clearance, US says
The Biden administration has reversed a decades-old decision to revoke the security clearance of Robert Oppenheimer, the physicist called the father of the atomic bomb for his leading role in World War II’s Manhattan Project. U.S. Energy Secretary Jennifer Granholm...
Submit your event
We will be happy to share your events. Please email us the details and pictures at publish@profilenewsohio.com
Address
P.O. Box: 311001 Independance, Ohio, 44131
Call Us
+1 (216) 269 3272
Email Us
Publish@profilenewsohio.com