Reuters: Oil trader IMMS sues Lebanon’s BankMed for $1 billion

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IMMS Chief Executive Murtaza Lakhani, who trades European, Middle Eastern and Asian oil and oil products, told Reuters that he would not comment beyond the case.

People use an ATM outside a bank, in Beirut, Lebanon, Wednesday, Nov. 20, 2019. (AP)

BEIRUT: Oil trader IMMS has sued Lebanese bank BankMed in the U.S. state of New York for failing to return $1 billion of its deposits when requested, according to court documents obtained by Reuters.

According to the court filing, BankMed refused to release the deposit on November 8, 2019, prompting IMMS to seek legal action on November 22.

IMMS Chief Executive Murtaza Lakhani, who trades European, Middle Eastern and Asian oil and oil products, told Reuters that he would not comment beyond the case.

Lebanese banks have been forced to implement informal capital controls in the wake of nationwide protests that have swept Lebanon since October 17. The protests, coupled with increasing financial pressure, have put on a strain on banks’ liquidity.

Lebanese banks have begun applying to restrictions on transfers and withdrawals while withholding large depositors’ money.

According to Reuter, “BankMed responded on Nov. 12 saying it was terminating all of IMMS’s credit facilities “due to the material adverse change in the economic condition of Lebanon and the Lebanese financial market”, according to the court filing.

Oil trader IMMS sues Lebanon’s BankMed for $1 billion – court filing

 

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