Local economists estimate that altogether, Lebanese banks owe over $90 billion (€77 billion), and say that since late 2019, they have severely restricted withdrawals and foreign transfers, especially in US dollars. Syrian businesspeople have long used Lebanese banks to avoid international sanctions and other restrictions. In response, some Lebanese banks have sold subsidiaries in other countries, including in Egypt and Jordan, and there have also been layoffs in the Lebanese banking sector, which employs around 25,000 people. New money for old debtsGovernments and businesses in the Middle East deposit their money in Lebanese banks for a number of reasons. “Lebanese banks are obviously becoming risky counterparts regionally and worldwide, and this makes them even further disconnected from the international system,” she said.

Source: Egypt Independent March 31, 2021 12:56 UTC