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Lebanon expat takes Blom Bank to UK court over savings saga

September 10, 2020 at 2:57 pm

People walk past BLOM BANK in the Lebanese capital Beirut on 13 June 2016 [PATRICK BAZ/AFP/Getty Images]

A Lebanese expatriate living in London is taking his native country’s Blom Bank to court in the UK over the bank’s failure to return his $1.4 million savings, the National reported.

The unprecedented move comes after the English High Court ruled on Tuesday that, as a UK domicile, Bilal Khalifeh could bring a case against Blom Bank from London.

Blom Bank, which has offices in the UK, France and Cyprus, as well as across the Middle East, reportedly fought to have the case heard in Lebanon.

The ruling, Khalifeh said in a statement to press outside the court on Tuesday, “is a victory for Lebanese consumers… It shows that no one, including banks in Lebanon, is above the law”.

Hundreds of thousands of Lebanese expats, such as Khalifeh, have been denied access to their savings since November last year when the country’s banks imposed informal capital controls and severely restricted transfers abroad in an effort to slow the biting economic and financial crises.

READ: Lebanon’s central bank governor: ‘I don’t want to resign’

Lebanese living within the Mediterranean state have also been denied access to their hard-earned cash, with banks limiting withdrawals to a mere $100 to $200 per week.

Despite restrictions, however, reports, which were later confirmed by Lebanese House Speaker Nabih Berri, circulated in February claiming more than $2 billion of “personal money” had been transferred out of the country by bank owners in the previous three months.

It has long been unclear how depositors with Lebanese banks will be able to recuperate their savings. However, Khalifeh’s case could open the door for Lebanese expats to file similar lawsuits against their banks.

“I hope that this case will help the many thousands of people in similar situations”, Khalifeh said outside the court.

“I was in the fortunate position that I was able to afford to bring this case and I am mindful that not every consumer is able to do so… but Lebanese banks should now do the right thing and pay all consumers their savings back”, Khalifeh added.

Khalifeh’s case will now go to trial in the UK, where the expat will be represented by London-based law firm Rosenblatt.

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