Traders with Lebanon using letters of credit (L/Cs) are being adversely hit by the violent conflict that has erupted in the country according to a leading Canada-based Lebanese businessman.

"It's a disaster," Cherif Gemayel, vice-president of the Canadian Lebanese Chamber of Commerce and Industry in Montreal told Canada's Globe and Mail. He fears that exporters to Lebanon will not be paid while trading partnerships built up over the last decade will be decimated.

Stranded

Because of the Israeli-imposed naval blockade, entrepreneurs who sent shipments to Lebanon are left stranded, says Gemayel.

"Some business people sent containers with L/Cs to Beirut. As long as the containers don't get there, those people aren't going to get paid," he told the Canadian daily.

According to Gemayel, there is a "robust [Lebanese] business community" in Montreal as well as in other Canadian cities.

Banks under pressure

Lebanon's banking sector, meanwhile, which has spent the past 10 years rebuilding after a gruelling 15-year civil war, is under pressure from customers seeking to withdraw funds as they endeavour to leave the country. At least some banks have been forced to limit cash withdrawals.

The banking sector in northern Israel has also been adversely affected by the conflict, with banks and ATMs reportedly closed in cities such as Tiberias, Nazareth and Haifa.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.