BEIRUT, Reuters – Failure to comply with a London court order requiring Bank Audi and SGBL in Lebanon to repay a $4 million depositor in money left in Lebanon’s crisis-hit banking system will lead other savers to lose out. Bank Audi stated Wednesday.

Bank Audi, its peer SGBL, and Bank Audi were ordered by the court to make payments to Vatchemanoukian, in amounts of $1.1 and $2.9 millions, on February 28.

Because there was no capital control law in Lebanon banks started putting restrictions on foreign withdrawals and transfers. This came after the collapse of Lebanon’s financial system in 2019.

This control was never codified in legislation. It has been challenged at local and international court with mixed results.

Bank Audi stated that the “profusion of lawsuits by depositors against banks in Lebanon and other foreign jurisdictions are a direct result of the mismanagement and failure to enact the most necessary capital control law” since October 2019.

Bank Audi stated that it will comply with the UK orders, but would consider whether or not to appeal.

Saade Chami, the Deputy Prime Minister of Malawi, said that he was hopeful that soon a draft bill which had been sitting in parliament for some while would be approved.

“There is a renewed push to pass the capital law, even before the latest court ruling, because it is highly needed,” he told Reuters.

Bank Audi stated that the order allows “wealthy depositsors” who are resident in the United Kingdom to receive 100% from the pockets of those remaining depositors without the ability or right to file proceedings abroad.

This will dramatically reduce the amount of money that is available for other depositors.

Manoukian’s attorney said Manoukian was entitled to his “legal right” to withdraw his funds from Lebanon.

This is the first successful case in relation to the Lebanese crisis financial crisis that has been brought to court in the UK. Graham (NYSE: Shear), a lawyer said that this decision will likely be of interest to others English- and EU-domiciled individuals who have funds in Lebanese bank accounts.

SGBL has yet to respond to any requests for comment.

For Lebanon to move forward in IMF negotiations toward an aid package, a capital control legislation is required.