BEIRUT : The proposed legislation, known as the Fiscal Gap Act, outlines a structured plan to return deposits not exceeding $100,000 within four years, while formally distributing financial losses among the state, the Central Bank of Lebanon, commercial banks, and affected depositors. The move comes after years of financial paralysis triggered by the freezing of deposits since 2019, which left millions of Lebanese citizens unable to access their savings.

The bill is a cornerstone of Lebanon’s broader financial and economic reform agenda and a key element in the long-delayed restructuring of public debt following one of the worst financial collapses in modern history. Government estimates put total financial losses at around $70 billion, a figure experts warn has grown further after six years of political deadlock and inaction.

The international community, particularly the International Monetary Fund, has made the passage of the Fiscal Gap Act a precondition for extending financial assistance to Lebanon, underscoring its significance for unlocking external support and stabilising the economy.

The announcement builds on a recent wave of legislative reforms passed by the Lebanese parliament, including amendments to banking secrecy laws and a new framework for restructuring the banking sector. These measures were approved following the election of Joseph Aoun as president and are seen as essential steps toward overhauling Lebanon’s deeply troubled financial system.