Lebanese banks reopen after workers suspend austerity strike

May 7 (UPI) -- Employees at Lebanon's Central Bank have decided to suspend their strike until Friday -- hoping negotiations with the government over proposed austerity measures will lead to a breakthrough.

The workers said they'll decide whether to resume the strike if no progress is made by Friday.

The protests started last week and have disrupted the Beruit Stock Exchange, as banks put limits on how much money people can withdraw. Checks were blocked and money transfers have been affected by the stoppage. With the strike temporarily in limbo, banks reopened and the limit was suspended.

"Normal operations have resumed because the concerns of the employees have been heard," head of the economic research and analysis department at Byblos Bank Naseeb Ghobril told Al Jazeera. "The government has assured the bank that it is independent and that their salaries would not be cut as part of austerity measures under discussion."

Banque du Liban Gov. Riad Salameh told employees their rights "would be preserved" and vowed to continue "discussions with concerned officials."

Lebanon's Cabinet is considering an austerity budget because the country's deficit is equal to 11 percent of its gross domestic product. The employees decided to strike over concerns about pay cuts and other policy changes.

"It is not the government's intention whatsoever to encroach on the independence of the Central Bank, which is one of the pillars of our liberal economic system," said State Minister for Presidential Affairs Selim Jreisati.

Lebanon secured an $11 billion lifeline in Paris last year but it must hit certain goals, such as reforming its electricity grid and cracking down on corruption.

Professors also went on strike Tuesday and the port in Beirut closed.