Lebanon: US dollar savers fear they’ll foot crisis bill

Lebanon's government estimates that losses in the country's insolvent banks since the onset of the currency crisis fall somewhere in the neighbourhood of $69bn [File: Mohamed Azakir/Reuters]

Beirut, Lebanon – Members of professional syndicates and anti-establishment political parties gathered outside the Beirut headquarters of Lebanon’s commercial banks’ lobby last month to take a stand against a policy that has haunted savers in the country since it plunged into a financial and economic crisis over two years ago – lirafication.

“Lirafication” describes a policy that would allow commercial banks to return depositors’ funds currently locked in United States dollar savings accounts in Lebanese pounds, also known here as lira. Depositors now fear that Lebanon will incorporate lirafication into its economic recovery plan with the International Monetary Fund to bail out the country’s insolvent banks.