"Finance Ministry" Deducts $600 Million from Depositors' Funds!

The confrontation between the Association of Banks in Lebanon and the Ministry of Finance is heading toward further escalation after the association rejected the ministry's demand that banks amend their tax declarations for 2020-2024, particularly regarding exchange-rate differences and returning Eurobond provisions to the tax base, warning that these demands could impose burdens of about $600 million and divert part of the funds earmarked for depositors to the public treasury. The banks insist that profits arising from revaluation of accounts due to exchange-rate changes are bookkeeping differences, not actual profits, while the ministry relies on the opinion of the Legislation and Consultations Authority No. 11/2025, which does not allow deducting provisions for unrealized losses from the tax base.