New changes to Lebanon’s banking reform bill coming

Lebanon’s Banking Restructuring Law is getting a revamp in the Parliament’s finance and budget committee, which approved 11 new articles earlier this week. The committee will review and vote on more amendments next week, Chairman Ibrahim Kanaan said.

The details are sparse, but we know the law was heavily criticized when it first passed in 2025 over vague provisions and weak accountability guardrails. The new amendments likely address a number of articles that were struck down by the Lebanese Constitutional Council last October. These included a provision that mandated referring all lawsuits filed against banks to a special court, as well as another that limited banks’ ability to appeal decisions from the Higher Banking Authority, which was first added due to criticism that banks have using loopholes in the appeals system as an intransigence tactic to block judicial accountability.

Background: The Banking Restructuring Law establishes a framework for a state-led due diligence on the country’s banks to assess which banks will be on the chopping block. It also lays the ground for recovering funds for depositors, a process that will be regulated by the Financial Stabilization and Deposit Recovery Law, which is yet to be passed.

Too big for the old suit

Algeria wants to revisit its EU trade framework: Algerian President Abdelmadjid Tebboune said this week he wants the 2005 Association Agreement with the European Union reviewed clause by clause, arguing the deal was signed when the economy ran almost entirely on oil and raw minerals exports and no longer fits a country building industrial capacity. His proof of concept was cement: Algeria imported 3 mn tonnes in 2016 and now has production capacity past 40 mn tonnes, of which at least a third is exported.

The rationale: Europe is Algeria’s top trading partner, and while the North African country already holds a positive trading balance with Europe by some USD 9.6 bn (mostly due to hydrocarbon exports), the country wants to open the European markets for new products as it pushes for diversification away from hydrocarbons.

Sign of the times

Emirates and Air Arabia have extended cancellations on select Kuwait and Bahrain routes for a second straight week while keeping other services running. Flydubai continues to operate selected flights to both destinations, alongside Kuwait Airways and Gulf Air. Separately, Emirates has also canceled select flights to Dammam and Amman, while Air Arabia suspended additional services to both destinations earlier this week.

BACKGROUND- Regional flight disruptions have continued since hostilities intensified, with several UAE and international airlines extending cancellations or delaying the resumption of Gulf services. The EU Aviation Safety Agency has also advised covered carriers to avoid airspace over parts of the Gulf until at least 29 July.