Lebanon's banks to pay price of sanctions on Hezbollah
New US sanctions against Hezbollah are adding pressure to Lebanon’s already struggling banking sector, further burdening the country’s economy.
Several challenges lie ahead for the Lebanese banking sector this year. An economic crisis is plaguing the region and the Syrian war is affecting stability in Lebanon. Now, the country finds itself squeezed between the hammer of the United States, which is calling for further banking restrictions, and the anvil of Hezbollah, which does not want the country to comply with US financial authorities’ instructions.
The banking sector — already marred by a recessive Lebanese economy, paralyzed constitutional institutions and ineffective governance — is now grappling with political tension.
