Finance Minister Yassine Jaber said the government is finalizing a phased plan to return depositors’ frozen funds in Lebanese banks, as part of a broader effort to rebuild trust in the country’s crippled financial system and to secure a long-awaited deal with the International Monetary Fund (IMF).

Leading Lebanon’s delegation to the IMF and World Bank spring meetings in Washington, Jaber told Asharq Al-Awsat that depositors' funds would be repaid in three successive phases. The first phase will prioritize middle-income account holders with deposits up to $100,000—a group that accounts for 84% of all depositors. The second phase will quickly follow, targeting accounts up to $500,000 or potentially $1 million, with higher amounts to be addressed afterward.

He added that Central Bank Governor Karim Souaid is preparing a study on banking sector restructuring and the repayment plan.

"No banking sector in the world can return all deposits to all depositors at once," Jaber said. "Repayment will happen in phases."

Jaber stressed that Lebanon’s priorities are "horizontal, not vertical," emphasizing the need to simultaneously pursue an IMF deal, agreements with the World Bank, a solution for the country's defaulted sovereign debt, a comprehensive banking sector reform, and protection of depositors' rights.

He underscored the urgent need to build a healthy banking sector with sufficient capitalization and full compliance with international standards. He said smaller or struggling banks may need to merge, with up to three institutions potentially combining to form stronger entities.

Jaber warned that Lebanon’s heavy reliance on cash transactions had contributed to its placement on the Financial Action Task Force (FATF) grey list, and stressed that restoring normal banking operations was critical to having Lebanon removed from that designation.

On U.S. pressure to dismantle Al-Qard al-Hassan, a financial entity linked to Hezbollah, Jaber said the matter falls under the jurisdiction of the Central Bank governor.

"This is a matter for the Central Bank governor to handle, not for us. Of course, we’ll see what happens," he said, while noting that Lebanon remains committed to a broader policy of disarming militias.

Jaber described his meetings in Washington as "generally positive," underscoring that the visit was crucial to bridging the "trust gap" that has developed over the years between Lebanon, the international community, and its Arab allies.

He said the Lebanese government had submitted its reform plans to the IMF and emphasized that the reforms are being pursued primarily for Lebanon’s own sake.

"We are not doing them to please anyone—not the IMF, not anyone else," he said. "We are doing them for our country, for ourselves, and for our people."

Citing the electricity sector as an example, Jaber asked: "If we fix the electricity sector so that Lebanese citizens pay a lower bill and receive 24-hour service instead of relying on private neighborhood generators, who are we serving—the IMF or our own people?"

He pointed to recent legislative progress, noting that Parliament had overwhelmingly approved amendments to banking secrecy laws, with 87 members voting in favor—a sign, he said, of confidence in the government’s reform efforts. A draft law on banking sector restructuring has also been prepared and referred to the Finance Committee for review before heading to the full Parliament.

Jaber also addressed Lebanon’s gold reserves, calling them a critical asset that bolsters confidence in the Central Bank.

"Unfortunately, past years witnessed wrong policies under the previous Central Bank governor (Riad Salameh), but these will now be avoided," he said.

He ruled out any sale of Lebanon’s gold reserves, noting that such a move would require parliamentary approval.

"It’s neither in the hands of the Central Bank governor, the finance minister, nor the government. It’s not even under discussion right now," he said.

Turning to what U.S. officials often refer to as "the elephant in the room"—Hezbollah and its weapons—Jaber said the Lebanese Army remains deployed in southern Lebanon and continues to implement UN Security Council Resolution 1701.

"If we want the army to control the entire country, we must empower it and do so in an organized way," he said, adding that Lebanon’s President, who previously served as Army Commander for eight years, was handling the matter wisely.

Jaber acknowledged logistical challenges, noting that although the Cabinet has approved the recruitment of 4,500 new soldiers, the Army still struggles to meet its target of adding 10,000 troops for deployment to the south.

Nevertheless, he said all parties, including Hezbollah, express respect for the Lebanese Army and a willingness to cooperate.

"The President is working toward a defensive strategy and will call for meetings in due time. Let’s give him the time he needs," Jaber said.

On regional ties, Jaber said Lebanon was working to restore its "natural" place among Arab countries and described relations with Saudi Arabia and the Gulf states as "excellent."

"Lebanon belongs to the Arab world. Hundreds of thousands of Lebanese live and work in Saudi Arabia, the UAE, Kuwait, Qatar, and Iraq," he said. "Our hand is extended. We will exert every effort to ensure we have the best relations with our Arab brothers."

He added that Lebanon’s Arab allies remain deeply concerned about the country’s future and want it to succeed.

Jaber also reflected on the severe crises Lebanon has endured over recent years, from the 2019 financial collapse and the 2020 Beirut port explosion to the COVID-19 pandemic, political deadlock, and now more than a year of conflict.

"Who could bear all that?" he asked.

He reminded Arab countries that Lebanon has hosted roughly two million Syrian refugees.

"I tell the Americans: If the U.S. received 120 million Mexicans for two years, what would happen? Lebanon has endured a lot," he said.

Jaber concluded by urging Arab and international partners to support Lebanon’s ongoing reform efforts, stressing that the country is making "serious and genuine" strides toward recovery.