On 26 December, Lebanon’s cabinet voted to approve a draft law that addresses the distribution of financial losses resulting from the 2019 economic crisis. The proposal outlines a framework for sharing the estimated $70 billion gap between the state, the central bank, commercial banks, and depositors.

Under the draft, depositors with balances below $100,000—representing the majority of accounts—would recover their funds over a four-year period. Larger depositors would receive an initial payment of $100,000, with remaining amounts converted into tradable instruments backed by central bank assets.

The draft law also includes provisions for accountability measures and sets conditions for future restructuring of the banking sector. It is considered a key step toward meeting requirements set by the International Monetary Fund for financial assistance.

The bill now moves to parliament for debate and potential approval. Its passage remains uncertain amid political divisions and opposition from banking representatives and depositors’ groups.