BEIRUT/ANKARA

The governor of Lebanon's central bank on Friday announced plans to gradually restore and repay all depositors' funds, which have been frozen for years under the country's severe financial and economic crisis.

Karim Souaid made the announcement during a ceremony for taking office on Friday in Beirut from his predecessor, acting central bank governor, Wassim Mansouri.

"We must work to gradually repay and restore all deposits, with the Central Bank, commercial banks, and the Lebanese state each bearing their responsibilities in this matter," he also said.

Souaid noted that the repayments will begin with small depositors, followed by medium-sized accounts, and then larger depositors.

Meanwhile, the new governor called "for recapitalizing commercial banks and contributing to deposit repayments," also vowing to "regulate the banking sector" in Lebanon.

He pledged to "rebuild trust in the banking sector" and to "create incentives and reactivate the economy through legitimate financial and banking channels."

Since 2019, Lebanon has been grappling with an economic and financial crisis described by the World Bank as one of the worst globally.

The situation has worsened with the recent Israeli aggression, which was halted on Nov. 27, 2024, exacerbating financial instability, energy shortages, and deteriorating living conditions.

In November 2024, the country's Economy and Trade Ministry said the Israeli aggression had caused estimated losses between $15 billion and $20 billion across key sectors in Lebanon.