Which Dollars?
Following the collapse of confidence in the Lebanese banking sector from 2019, dollar balances held in local accounts have been subject to withdrawal and transfer restrictions imposed by banks. Those balances trade at a substantial discount to transferable dollars, a distinction Lebanese businesses describe informally as the difference between local-account dollars and fresh funds.
A debtor settling from a pre-existing local account and a debtor paying with newly received external funds are therefore offering materially different value for the same nominal figure. A settlement agreement that does not distinguish between them has not settled the important term.
Every Lebanese settlement we negotiate specifies the source of funds and the transfer channel, not merely the amount.
Functioning, With Constraints
Lebanon's civil courts follow the French tradition and remain operational, with commercial claims heard in the ordinary civil courts and enforcement conducted through execution offices. Proceedings are in Arabic and documents require certified translation.
The practical constraint is not the law but the environment: currency instability affects the real value of a judgment denominated in local terms, and periods of disruption have affected court operations. A judgment obtained is not automatically a recovery realised.
Settlement Structured Around Funds
For most foreign creditors the realistic path is a negotiated settlement whose terms address the currency question directly - payment in fresh funds, from a named external source, through a specified correspondent channel, on a defined schedule.
Where the debtor has export earnings or an affiliate outside Lebanon, structuring payment against those is normally what makes a recovery real. Where it does not, the honest assessment may be that a nominal recovery is all that is available, and we say so rather than pursuing a figure that will not convert.
Commercial Obligations
Limitation follows the civil law pattern with commercial obligations subject to their own periods distinct from general civil claims. Given the wider environment, the limitation position should be established early - a claim that becomes time-barred while waiting for conditions to improve has lost the option entirely.
How Long Does a Lebanese Claim Take?
| Stage | Typical Duration | Cost |
|---|---|---|
| Assessment and demand Currency position, then Arabic demand | 3–6 weeks | Low |
| Negotiated settlement Structured around source of funds | 1–5 months | Low |
| Court proceedings Civil courts, first instance | 1–3 years | High |
| Execution Through the execution office | 3–9 months | Medium |
How Does SXB Global Handle a Lebanese Case?
We start with the currency question because it determines what any outcome is worth. Where the debtor can pay in fresh funds we negotiate on that basis; where it cannot, we tell you what a realistic recovery looks like before you spend anything on pursuing a larger nominal figure. Where legal proceedings become appropriate, SXB Global coordinates the instruction of appropriately authorised local counsel. Legal services are provided by the relevant independent legal professionals.