Retired soldiers in Lebanon started picketing the Central Bank building late on Sunday in protest at draft budget proposals to cut the state wage bill, saying they aimed to stop workers entering on Monday morning.

As about 100 protesters gathered outside the Central Bank, Lebanon's coalition government began holding its latest meeting to try to agree to a budget that would reduce the fiscal deficit in the heavily indebted state.

The retired soldiers have blocked the Central Bank's three entrances, including the one for vehicles, said a Reuters video journalist who was there.