Lebanon's New Recovery Plan Faces Uphill Battle Amid Opposition to Bank Restructuring and Depositor Bail-in

Lebanon's third economic recovery plan faces opposition and is unlikely to be adopted due to criticism from banks, organizations, MPs and ministers

The plan aims to address Lebanon's $70 billion in losses and restructure its insolvent banks to repay depositors and determine which banks survive

Opponents argue the state should bear responsibility for misusing funds, while defenders say the state lacks means to bail out depositors

The plan proposes repaying small depositors gradually, while larger deposits above $100k would be converted to equity or securities tied to state assets

The plan distinguishes between legitimate and illegitimate deposits, which could uncover billions in illicit funds, facing backlash from bankers and politicians