Lebanese bank BankMed and oil trader IMMS have settled a $1 billion lawsuit on Saturday, according to a statement from IMMS.
The bank had been sued by IMMS for failing to return $1 billion of its deposits when requested, according to a document quoted by Reuters. Major Western banks including JP Morgan Chase, Citibank, BNY Mellon, and Standard Chartered Bank were also named in the suit as BankMed has been using these banks to facilitate large US dollar transactions, a court filing alleged.
“We are pleased to have reached a solution whereby both parties can move on amicably, particularly in light of the current climate,” IMMS founder Murtaza Lakhani said in a statement.
Details of the settlement were not disclosed.
Lebanon’s economy has been in crisis since last year, a situation that has been exacerbated by the ongoing coronavirus pandemic.
Last month, the government announced it would default on a $1.2 billion Eurobond, with leaders vowing to use the funds to provide the population with basic needs.
Officials have noted that the country’s finance sector is bloated “four times over,” and in desperate need of reform, although experts have questioned if the political will exists among Lebanon’s political and finance industry leaders to tackle a reform program of such magnitude.