ABL: Losses in US Dollars Turned to Taxable Profits in Lebanese Pound!

In his October 2026 editorial, “Once Again, Financing the Deficit with Depositors’ Money,” published in the Association of Banks in Lebanon’s (ABL) monthly report, Secretary-General Dr. Fadi Khalaf addresses the government’s proposed taxation of banks’ Eurobond transactions and its potential consequences for Lebanon’s banking sector and depositors. Khalaf criticizes the possibility of imposing taxes on accounting gains resulting from the depreciation of the Lebanese pound, despite banks having incurred substantial losses following Lebanon’s sovereign debt default. With banks already struggling to secure sufficient liquidity to repay depositors, he warns that additional tax obligations could further weaken their financial position and divert resources away from deposit recovery.

For the full report click HERE.