Lebanon says no need for gold sales to repay depositors

Lebanon’s central bank is “fairly asset-rich” and will not need to sell any gold reserves to pay depositors, the country’s economy minister has said.

Gold reserves valued at $40 billion as of December 15 are important as they provide confidence to asset holders, Amer Bisat told Bloomberg TV, citing central bank data.

He said the central bank can back a plan to repay most depositors whose funds have been frozen for years due to the country’s financial crisis.

The cabinet last month approved a draft bill that will allow depositors to withdraw up to $100,000 over the next four years. Funds exceeding the threshold will be converted into bonds backed by central bank assets.

The minister said he remained “cautiously optimistic” of the draft law’s approval by parliament.

“I hope to make progress in the next few months on this very important piece of legislation,” he told the news channel.

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In October the Washington-based Institute of International Finance proposed the sale of part of the gold reserves, but the government is not authorised to act without parliamentary approval. Elections are due in May.

Foreign assets increased from $31.5 billion at the end of June 2024 to $41.7 billion at the end of June 2025, the central bank said in its latest monthly economic and monetary bulletin.