Charbel (34 years old) is worried about the ongoing closure of banks until the beginning of next month. "We are eagerly waiting for our salary, and any continuation of the strike will not be in our favor," says the employee of an electronic design company, who supports his family with a salary transferred to his account from abroad. Charbel shares these concerns with tens of thousands of Lebanese who withdraw their salaries at the beginning of each month from ATMs. They believe that the bank closures, which began at the start of the week, have not disrupted the lives of employees and low-income workers "who rush to withdraw their salaries at the beginning of every month," although they withdrew amounts that had previously arrived in their bank accounts during the past two weeks. However, he asserts that "it will definitely have an impact on us if the closure continues, because the transfers will not reach our accounts, and therefore, how will we live and support our families?" he questions.
Lebanese banks began a strike last Monday, protesting the storming of bank branches by Lebanese depositors demanding their funds that have been frozen for three years. While some depositors managed to force banks to release a portion of their frozen deposits, others failed, and Lebanese authorities arrested some of those involved before the banking association started their strike pending a solution to this dilemma that threatens the safety of employees.
Banks are facing pressure from their employees, who are demanding protective measures. George Al-Haj, the head of the Banking Employees Union, stated that they refuse to return to work "unless in a safe environment, as it is unacceptable for such incidents to recur." He clarified in a radio interview: "We are keen to provide the best services to military personnel and others, but in a safe atmosphere starting next week."
ATM machines continue to operate normally, allowing account holders to withdraw their new transfers via ATMs, as banks "refill machines with cash daily to avoid disrupting citizens’ lives during the procedural closure," according to banking sources for Asharq Al-Awsat, adding that electronic banking operations "have not been interrupted."
However, this does not mean that the current measures will allow employees to receive their salaries at the end of the month, as these require a transfer from their source to their accounts, which will be impossible if the closure continues. Charbel states: "We understand the rights of depositors and their procedures to forcibly withdraw their funds, but they must understand that tens of thousands need their salaries at the beginning of the month. If the strike continues, this will not be feasible, resulting in a major social crisis."
The payment of public sector salaries requires a transfer from the Ministry of Finance to the Central Bank, from which the amounts are then transferred to banks that distribute them to their clients' accounts. For the private sector, salaries are transferred from companies' accounts to their employees following internal banking procedures, whether in local currency or foreign currency.
Typically, pressure begins on ATMs three days before the end of the month, which is the date for military salaries to be disbursed. Bank branches refill ATMs with cash twice a day, in the morning and the afternoon, to meet customer demand, especially for employees who withdraw their salaries within a week. Consequently, some fear the impact of the closure on military personnel starting next week due to the pressure on ATMs. Relevant sources indicate that "the situation is not sound," and that matters are "being handled exceptionally," but they do not deny the effects of the closure on people's lives.
The repercussions of the closure also extend to other banking operations related to transfers abroad. One food importer is looking for an alternative to transfer money to Turkey for his merchandise, should the banks remain closed. He says some advised him to ask money transfer companies if it is possible to transfer money abroad through them, to reach the accounts of the exporting company.
Despite the banks' closure, some financial services remain operational. It was notable that the Central Bank announced the day before yesterday that "the trading volume on the Sayrafa platform reached 41 million US dollars at an exchange rate of 29,800 Lebanese pounds per dollar, according to the exchange rates of transactions conducted by banks and money exchange institutions on the platform."
