Lebanese Cabinet approves draft financial gap law, sends it to Parliament—the details

Report by Bassam Abou Zeid, English adaptation by Mariella Succar

Lebanon’s Cabinet approved the draft financial gap law and referred it to Parliament after three sessions of debate, without introducing major amendments that could draw objections from the International Monetary Fund.

The government voted on the bill, which passed with 13 votes in favor out of 22 ministers present, while nine ministers voted against it.

Those supporting the bill included Prime Minister Nawaf Salam and ministers Tarek Metri, Yassine Jaber, Amer Bisat, Paul Morcos, Haneen Sayed, Rima Karami, Michel Menassa, Nizar Hani, Fayez Rasamny, Laura El Khazen Lahoud, Ahmad Hajjar, and Fadi Makki.

Opposition came from three ministers representing the Lebanese Forces—after Minister Youssef Rajji left the session—along with two Hezbollah ministers, Tamara El Zein, Nora Bayrakdarian, Charles Hajj, and Adel Nassar.

Among the key amendments introduced was a clarification that Banque du Liban’s reserves are considered part of depositors’ funds. However, no changes were made to provisions directly affecting depositors’ recovery of their savings.

Under the draft law, depositors remain divided into four categories. Deposits of up to $100,000 are to be recovered over a four-year period, while amounts exceeding that threshold would be compensated through financial certificates redeemable over a longer term.

Prime Minister Salam said the draft law is not perfect but represents a step toward restoring rights.

Ministers opposing the bill cited concerns over the availability of liquidity needed to meet the obligations of repaying deposits in full.

Once in Parliament, the draft law is expected to undergo further debate and amendments. Officials acknowledged that its final form and the time needed for its approval remain uncertain.

For depositors, the priority remains recovering their savings as soon as possible, following nearly six years of financial hardship.