Lebanon Prosecutor Freezes Assets Of 20 Banks After $2.3BN In 'Illegal' Transfers

[Swordsmyth]

Lebanon's state news agency NNA said on Thursday the country's top financial prosecutor has moved to freeze the assets of 20 Lebanese banks, including the property of the bank chiefs and boards.

"Judge Ali Ibrahim decided to freeze the assets of twenty Lebanese banks. He also imposed a freeze on the assets of the heads and members of boards of directors of these banks," state-run NNA said.
It comes amid a broader ongoing probe into the alleged illegal transfer of some $2.4 billion overseas and the recent sale of Eurobonds to foreign funds. Fourteen bankers are reportedly under scrutiny as the Lebanese economy teeters on the brink of collapse, and crucially with a March 9 deadline looming for repayment of $1.2 billion in Eurobonds.

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Bloomberg lists some among Lebanon's biggest lenders including "Bank Audi, Fransabank, Blom Bank and the Lebanese unit of Societe General" under investigation.
And further "The prosecutor also questioned the head of the Association of Banks in Lebanon, Salim Sfeir, who is also chairman of Bank of Beirut," according to the report.


The government charges that bankers are actively thwarting attempts to restructure the country's debt, while the banks say they needed cash to meet demand of patrons for basic staples including wheat, fuel and medicines amid the ongoing liquidity crisis.
The Institute of International Finance (IIF) now lists Lebanon as having among the highest debt-to-gross domestic product ratios in the world at 166%.

More at: https://www.zerohedge.com/economics...-assets-20-banks-after-23bn-illegal-transfers

 

[Swordsmyth]

The showdown between the Lebanese government and local banks took a new twist when a freeze order on 20 lenders was lifted just hours after it was first imposed.

On Thursday, the financial prosecutor locked down the banks’ assets as well as those of their chairmen amid an investigation into the illegal transfer of billions of dollars and the recent sale of Eurobonds to foreign funds. But by the end of the day, the state prosecutor, Ghassan Oueidat, had suspended the move, pending further investigation.
The week began with financial prosecutor Ali Ibrahim questioning 14 bankers on the transfer of $2.3 billion overseas during October and November. Among the banks targeted are Lebanon’s biggest lenders, including Bank Audi, Fransabank, Blom Bank and the Lebanese unit of Societe General. The prosecutor also questioned the head of the Association of Banks in Lebanon, Salim Sfeir, who is also chairman of Bank of Beirut. The decision still required the approval of central bank Governor Riad Salameh, according to a judiciary official, who declined to be identified.

More at: https://news.yahoo.com/lebanon-goes-attack-against-banks-135821530.html