Lebanese banks re-open for first time in two weeks (updated)

Bloom Industries

01/11/2019 07:17

(Adds quotes, details, context)
    BEIRUT, Nov 1 (Reuters) - Lebanese banks opened to customers
on Friday for the first time in two weeks, following a wave of
protests that led the prime minister to resign.
    Queues of up to 20 people formed outside at least three
banks in the capital, Beirut, as doors opened, Reuters witnesses
said. Smaller numbers were observed at other branches. 
    "There is not a lot of panic. I thought it was going to be
more," said a customer who was holding a ticket showing he was 
17th in line outside a branch of Byblos Bank in Zouk Mosbeh,
north of Beirut, where about 20 people were waiting.
    Two weeks of political turmoil and the worst economic crisis
since the 1975-90 civil war had fuelled concern savers would
rush to withdraw funds or transfer them abroad once banks
re-open.
    The central bank had promised not to impose capital controls
when banks re-opened, measures that could hamper the currency
inflows and investment Lebanon badly needs to weather its
economic crisis.    
    There may be no formal capital controls, but banking sources
said on Thursday that commercial banks would try to restrict
transfers abroad to cases such as loan payments, medical
expenses and family support.  urn:newsml:reuters.com:*:nL8N27G7GL
    A customer at one Beirut bank was told a letter would be
needed from an overseas bank for a mortgage payment to be
transferred abroad. A bank employee was overheard offering
higher interest rates to another customer.
    At a branch of Blom Bank, one of Lebanon's biggest banks, in
Beirut's Hamra Street, around 10 customers entered the bank as
its doors opened after 8 a.m., a Reuters witness said. The
number then grew to 20.        
    As banks opened in the Sodeco district of the capital,
around 20 people were queuing outside both a branch of
Frasnsabank and a branch of Bank Audi, a Reuters witness said. 
    A nearby branch of Blom had no queue outside and a few
customers inside. At a nearby Bankmed, around 10 people were
waiting in the branch but there was no queue outside.

 (Reporting by Eric Knect, Imad Creidi, Ellen Francis, Samia
Nakhoul; writing by Tom Perry; editing by Christian
Schmollinger, Larry King)
 ((thomas.perry@thomsonreuters.com; Reuters Messaging:
thomas.perry.reuters.com@reuters.net))