No solution has been reached that satisfies the banks regarding the desired security protection to resume normal operations, following the recent incidents where depositors stormed several branches to forcibly retrieve their deposits and the rising public calls for similar actions. This prompted the Association of Banks in Lebanon to decide during a meeting held yesterday to keep their doors closed for the time being, especially "in the absence of any measures or even reassurances from the state and all security agencies to secure a safe work environment."
With the continued closure of banks, questions have been raised about the impact on vital sectors in the country. George Hajj, President of the Union of Bank Employees, affirmed to "Nada الوطن" that ATMs are operating as usual; therefore, those wishing to make withdrawals for transactions completed last week can do so via "SAYRAFA." Furthermore, they can withdraw according to directives 161 and 151. Even the management of banks "is working with the minimal number of employees necessary to ensure operations without risking their safety. Thus, there is no complete halt to operations, only a closure of bank branches and a stop to transactions done at the counters."
As for the volume of trading via "SAYRAFA," which reached $20 million yesterday, Hajj indicated that this "may be due to withdrawals from previous transactions or results of currency exchanges at brokers."
The forced closure of banks has repercussions on the importation of consumer goods, particularly food items. Hani Bahsali, head of the Syndicate of Food Importers in Lebanon, explained to "Nada الوطن" that "this is extremely dangerous, even if the bank’s administrative team is operating, because transferring money abroad requires a cash counting box, preparing a notice, processing the transfer, and auditing it, which necessitates a team of employees and the bank’s doors to be open. If this situation persists, it would constitute a disaster, reminiscent of the bank closures for several weeks at the end of 2019."
In terms of medicines that are imported in limited quantities, particularly those still subsidized by the Central Bank of Lebanon, Karim Jabara, head of the Syndicate of Medicine Importers in Lebanon, pointed out to "Nada الوطن" that this sector would be "the most affected by the closure of banks due to the lack of stock for subsidized medicine, since upon the arrival of a limited shipment, it is immediately dispensed to patients, and we wait for the next month for the second shipment to arrive." He added: "While it is true that the Central Bank and the Ministry of Health have secured the required procedures for subsidized medicine, the approval comes from the commercial bank, which will delay the imports. A week's delay for a cancer patient and for those with chronic diseases is considered a long time; what if that period extends further?"
The situation is different for non-subsidized medicines, Jabara continued, stating that "a brief closure of banks, such as a week, is not a problem due to sufficient stock of these medicines that do not undergo a subsidy process and will not be removed from the markets." He noted that "80% of the drug subsidy is directed towards chronic diseases, meaning that a patient cannot afford any delay in receiving them, especially since there are no alternative options, and 20% of the support is for medications for chronic conditions, which is the core issue."
