LEBANON (Enmaeya News) - October 9, 2025
Economist Garbis Eradian has proposed a five-year plan to help Lebanon recover frozen bank deposits, rebuild its financial credibility, and attract new investments, according to Nidaa al-Watan.
The proposal aims to restore trust in the banking sector and stabilize the economy, which has been in crisis since 2019.
Eradian, a senior economist at the Institute of International Finance, said Lebanon still has the resources, skilled people, and international support needed to overcome the collapse.
However, he explained that this is only possible if reforms are carried out quickly and transparently.
He emphasized that the plan must be supported by the International Monetary Fund (IMF) to be successful.
The plan calls for returning deposits gradually over five years, under a clear and fair mechanism that prevents further losses.
It also seeks to stabilize the Lebanese pound and encourage private investment to boost economic growth.
Eradian believes that rebuilding confidence in financial institutions is essential for Lebanon to recover from one of the worst economic crises in its history.
The government is also preparing its own version of a financial recovery plan, which will soon be discussed in the cabinet.
Similar to Eradian’s proposal, the government’s plan divides the financial losses among the state, the central bank, commercial banks, and depositors.
A repayment system is under discussion to return deposits under 100,000 U.S. dollars in cash installments over three to five years. Larger deposits, however, may take longer to be repaid.
The government is also considering using part of Lebanon’s gold reserves, worth about 30 billion dollars, and issuing bonds to help fund deposit repayments.
However, without an agreement with the IMF and the trust of both citizens and investors, efforts to rebuild the banking sector may stall again.
If implemented properly, Eradian’s plan could mark a turning point for Lebanon’s economy and offer relief to millions of depositors who have been unable to access their savings.
