Lebanon’s AM Bank Suspends Its Membership With Banking Association Following IMF Criticism

Middle East Monitor

On Friday, the AM bank in Lebanon suspended its membership in the Association of Banks in Lebanon (ABL) because of its decisions “harming the banking sector.” This occurred a few days after the association denounced an IMF draft deal with Lebanon in a letter.

In a statement, AM Bank said that its decision happened because of “inappropriate decisions made by ABL,” including the letter from the advisor of the ABL to the IMF where he called their deal with Lebanon “unlawful” and “unconstitutional.”

The Staff-Level Agreement (SLA) between Lebanon and the IMF pledges $3 billion in financing over a period of 4 years to aid the country in recovering from its financial crisis.

One condition to this agreement is that the country should implement some measures, including a restructuring of its banks which have denied the majority of their depositors their savings since 2019.

AM bank encourages other banks to follow them in their membership suspension so that the ABL understands that “enough is enough.”

Bank Audi has also disagreed with ABL’s letter but the majority of Lebanese banks still disagree with the IMF deal.

Related: Lebanon Banks Association Labeled IMF Draft Agreement “Unlawful” In Letter