Beirut, March 2, 2022 We refer to the order issued by the High Court of Justice – Queen’s Bench Division in London, UK on 25 February 2022, in the case filed by Mr. Vatche Manoukian against Société Générale de Banque au Liban S.A.L. and Bank Audi sal (the “Order”). Bank Audi sal would like to make the following clarifications:
1) Bank Audi sal will consider its options regarding whether or not to appeal the Order and the related court judgment upon issuance of the judgment. In the meantime, Bank Audi sal intends to abide by the Order prior to expiration of the stated deadline.
2) The UK court did rule in favour of the claimant by ordering both banks to make an international transfer pursuant to a request presented by the claimant in November 2019. It is plain that the Order or any other similar decision would not have been issued if capital control laws or regulations were enacted in Lebanon.
3) Execution of the Order will result in unequal treatment among depositors with wealthy depositors who happen to be resident in the United Kingdom being able to be paid 100% of their funds out of the pockets of the remaining depositors who do not have the right or ability to bring proceedings overseas. This will significantly reduce the money available to the other depositors.
4) The profusion of lawsuits filed by depositors against banks before Lebanese and foreign jurisdictions is a direct consequence of the mismanagement of the crisis since October 2019, and more specifically the failure to enact a most needed capital control law, and to implement a comprehensive reform plan. In addition to driving Lebanon into a severe economic, financial and currency crisis, those shortcomings also caused a deep confidence crisis and a Bank run on the Lebanese banking system. The run forced banks to impose a number of restrictions with respect to the withdrawal of funds and transfers abroad, as a necessary substitute to the much needed capital control law.
5) Bank Audi sal has been keen since the outset of the crisis to ensure fair and equal treatment amongst all depositors and, following the Order, will take whatever necessary measures to maintain, to the extent possible, equal treatment of its depositors and protect the vast majority of them.
6) Any further delays in enacting capital controls and a comprehensive reform plan will lead to additional harm, creating further unequal treatment.