Karim Souaid: Lebanon's new central bank chief faces daunting task
As the newly appointed governor of Lebanon's central bank, Karim Souaid has become a key player in the daunting task of plotting Lebanon's path to economic recovery and leading a much-maligned state institution.
Mr Souaid is the founder and managing partner of Growthgate Capital, a private investment firm established in late 2006.
He is regarded as being favoured by the banking lobby in Lebanon and garnered the support of President Joseph Aoun for the role of central bank governor. Prime Minister Nawaf Salam was opposed to his appointment.
Before founding Growthgate, Mr Souaid was the managing director of Global Investment Banking at HSBC Middle East from 2000. He has also been involved in privatisation initiatives in a number of Arab countries.
He studied law at Lebanon's St Joseph University and has a Master of Law degree from Harvard University. He has also worked as a corporate finance attorney in New York, and is a member of the New York State Bar Association, according to his official biography.
Mr Souaid is a Maronite Christian, the sect for whom the post of central bank chief is reserved under Lebanon's confessional system. The appointment is made by cabinet decree for a six-year mandate that can be renewed multiple times, based on the finance minister's recommendation.
A number of prominent figures in Lebanese finance sit on the board of directors of Growthgate including Varouj Nerguizian, described as an independent director, who is a financial affairs adviser to Mr Aoun. Also on Growthgate's board is Maher Mikati, whose billionaire father Najib was Lebanon's previous prime minister.
Opponents of Mr Souaid's appointment point to such links as evidence that he is not the clean break from the past that Lebanon needs.
The central bank chief's role is regarded as crucial for Lebanon as it works to implement much-needed economic reforms and address the deep financial losses incurred since the onset of an economic crisis in 2019 – described as one of the worst in modern history.
The collapse – widely blamed on corruption and financial mismanagement by Lebanon's ruling class – plunged much of the population into poverty. The life-savings of many Lebanese evaporated almost overnight as the local currency plummeted.
Mr Souaid's predecessor, Riad Salameh, is one of Lebanon's most controversial figures and had held the governor's role for three decades following the 1975-1990 civil war. Initially regarded as a genius and saviour, Mr Salameh's stock plummeted in recent years. He stepped down from the post in 2023 and was arrested in Lebanon last year over embezzlement, money laundering, and fraud allegations. The US and UK are among the countries that have sanctioned him.
Lebanon's problems have been greatly exacerbated by the year-long war between Israel and the Lebanese Iran-backed militant group Hezbollah. The World Bank recently estimated the cost of reconstruction and recovery at $11 billion.
Lebanon's new government under Mr Salam, who was appointed in January, has shown interest in renegotiating the $3 billion staff-level agreement reached with the International Monetary Fund in April 2022.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
38 minutes ago
- Zawya
Oil leaps above GCC budget price
Middle East hostilities boosted oil prices at the weekend close to $80 a barrel , which is higher than the average breakeven price needed by Gulf crude producers to either achieve a fiscal surplus or keep their deficits in check. Prices surged by at least nine percent on worries that the attacks could set off wider Middle East hostilities that would disrupt energy supplies. Prices of Brent crude, the international benchmark, jumped at the start of the conflict to nearly $78 a barrel and analysts fear it could surge further if the hostilities continued. The fears are stoked by the fact that Iran holds a strategic position on the northern side of the Strait of Hormuz at the exit of the Gulf. That means Iran could block oil and natural gas exports from other Mideast oil producers in retaliation for the Israeli strike. More than 20 percent of the world's seaborne oil shipments pass through the narrow waterway. 'The surge in oil prices is good for the budgets of the Gulf countries but this is not good if prices continue to rise as this will stifle demand for their oil,' said Jamal Banoun, a Saudi economist who heads the Riyadh-based SMC consultancy centre. 'Prices are now ok…they were not ok when they were below $70 before the Israeli attack on Iran and they are not ok if they reach $100…this price is not good for both the consumers and producers,' he told Zawya Projects. Most Gulf Cooperation Council (GCC) countries, which produce 17 million barrels per day and rely heavily on crude sales, have tailored their budgets to a $70 price in 2025. In the case of Saudi Arabia, the world's dominant crude exporter, the budget was based on that price for a deficit of 101 billion Saudi riyals ($27 billion) and on more than $90 for a shortfall-free budget. Kuwait and Oman have forecast a $70 price while that price could allow Qatar and the UAE to achieve a surplus given their large gas exports. Bahrain, which has little oil, a breakeven price of around $82 is needed for a balanced budget, the IMF said in a report in late 2024. The price leap came after prices languished at below $70 over the past weeks following worries that demand would further slow down due to rising threats of a trade war. There were fears prices could further dip after reports about a headway in nuclear talks with Iran since this will usher in the full return of sanctions-hit Iran to the oil market. 'The talk last month was that GCC countries may suffer from a wider deficits due to low oil prices…if the current situation escalates, we can say that these countries may record lower deficits or even surpluses…what will help them is that they have increased their oil production as per OPEC Plus decision,' said Nabil Al-Marsoumi, an energy and economics professor at Basra University in South Iraq. (Reporting by Nadim Kawach; Editing by Anoop Menon)
The National
an hour ago
- The National
How Israel's 'decapitation campaign' could usher in escalation with Iran
In less than 48 hours, Israel killed a tranche of Iran 's top military brass in its multipronged attack. They included the heads of the commander in chief of the Islamic Revolutionary Guard Corps, Iran's most powerful military force, the IRGC's aerospace commander, responsible for missile and drone programmes, and the chief of staff of the armed forces. Supreme leader Ayatollah Ali Khamenei swiftly announced replacements, likely wishing to avoid a power vacuum and establish a chain of command for Iran's retaliatory attacks, which began hours after Israel's first strikes on Friday morning. Israel trumpeted the killings as a major blow against Iran and its alleged nuclear ambitions. However, the deaths of experienced leaders who were believed to have urged caution behind the scenes could also push more aggressive voices to the fore in Iranian military circles. IRGC chief Hossein Salami was replaced by Brig Gen Mohammad Pakpour, another long-standing senior Revolutionary Guard. Sayyid Majid Mousavi, already deeply involved in Iran's ballistic missile and drone programmes, became the group's aerospace chief, replacing Amir Ali Hajizadeh. Army chief of staff Mohammad Bagheri was replaced by Major General Amir Hatami. Lieutenant General Gholamali Rashid, formerly commander of Iran's Khatam al-Anbiya combatant command headquarters, was replaced by Major General Ali Shadmani. Israel also killed nine scientists involved in Tehran's nuclear programme, including Fereydoon Abbasi, a former head of the country's Atomic Energy Organization. Some of the military leaders are of a similar age and experience to those they replaced. Like his predecessor Salami, Mohammad Pakpour is a veteran of the Iran-Iraq war, the 1980-1988 conflict that killed over one million people in both countries, leaving an indelible mark. The deaths of so many senior military commanders in such a short space of time was 'not without effect,' but also said they were replaceable, a senior Iranian government official said. 'You saw that in less than 24 hours, new officials started their work in these areas, which shows the existence of capable people,' the official told The National. Their thinking is not hugely different from those they replaced, he believes. 'The intellectual field of the new people is entirely similar to the people we lost.' Israel's attacks were aimed at degrading and destroying Iran's nuclear programme, which is believed by Prime Minister Benjamin Netanyahu's government to be aimed at quickly producing a weapon. Iran has always denied it seeks nuclear armament, saying it wants to continue uranium enrichment for what it says are peaceful agricultural and scientific purposes. It will take weeks to gauge the effectiveness of Israel's continuing campaign, which has also targeted ballistic missile launch sites to curb the impact of Iran's retaliation, which is also continuing. According to the Washington DC-based Institute for the Study of War, Israel conducted a, 'decapitation campaign,' targeting Iran's military leadership. Khamenei's appointment of successors means the disruption is 'temporary and limited,' the institute said in an analysis note on Friday, although it added that continued Israeli strikes on missile infrastructure may limit their abilities to carry out retaliation. Rashid and Bagheri etc were among the main Iranian commanders who believed that direct military conflict and tension with Israel should be avoided as much as possible,' Tehran-based political observer Rhetorically, the new military commanders have swiftly come out with statements vowing revenge on Israel similar to remarks made by their predecessors after previous strikes on Iranian interests and counter-attacks last year. 'This series of operations will continue on a larger scale and more devastatingly than before until the criminal and aggressor Zionist enemy completely regrets [its actions],' Ali Shadmani said on Sunday. So far, that response has been more devastating than previous direct Iranian attacks on Israel. At least 13 people have been killed as of Sunday afternoon, and hundreds injured, Israeli authorities have said. Buildings in Tel Aviv and other areas of central Israel have been destroyed. Both the intensity of the continuing Israeli operations against Iran, and the loss of commanders who advocated for so-called 'strategic patience' could lead to more intense escalation, analysts believe. According to a political observer in Iran, those killed in the past 48 hours were among commanders who prevented a previous operation that another part of the military wanted to organise against Israel a few months ago. 'Rashid and Bagheri, etc, were among the main Iranian commanders who believed that direct military conflict and tension with Israel should be avoided as much as possible,' he told The National. 'For example, that Iranian counter-attacks should be more symbolic as much as possible, and deterrence should be demonstrated rather than enforced.' More widely, as waves of killings forces replacement and promotion of younger men in Iran's military, a new generation without the experience of the Iran- Iraq war, and its devastating consequences, will come to the fore. A war involving Iran could give less experienced leaders the same sort of clout that older war veterans have, according to Serhan Afacan, director of the Istanbul-based Iranian Studies Centre. 'Although this does not necessarily mean that they will drag the country into war if they take power, it can be said that they will be less flexible in finding common ground with the US and the West in general,' he told The National. The impact on Iran of Israel's continuing strikes could deepen if attacks on energy infrastructure that started overnight escalate. On Saturday night, the Israeli military struck a refinery at the giant offshore South Pars gasfield, and Tehran's Shahran oil depot, in an escalation of its operations from military and nuclear sites to the energy sector. Iran is already unable to produce enough electricity to prevent rolling power cuts in the summer months, or sufficiently supply gas for winter heating. Any further erosion of its energy supplies could have a dramatic impact and stoke anger among the population. Even Iranians who oppose their government have condemned the Israeli attacks on their country, seeing them as attacks on Iranian sovereignty and resulting in civilian fatalities. Many Iranians circulated pictures of Parsa Mansour, a padel player, and Parnia Abbasi, a poet in her 20s, both killed in the strikes. Parvaz Park in the north of the Iranian capital was filled with more people than usual on Saturday night, as crowds gathered to watch missiles being launched from Iran to Israel, the political observer in Tehran told The National. People there 'had various different feelings,' the man said, on condition of anonymity. 'The part that is against the Islamic Republic was even upset about the Israeli attack on Tehran. In their contradictory feelings, they would not mind if Iran targeted Israel with force that night.'
Zawya
an hour ago
- Zawya
Paris Airshow opens under cloud of India crash, Mideast conflict
PARIS: The Paris Airshow opens on Monday with its usual fanfare of aircraft orders expected to be tempered by concerns over India's deadliest air disaster and escalating missile strikes between Israel and Iran that have rattled the global aviation industry. Every two years, Le Bourget Airport in the northeast of Paris is transformed into a showcase for the aerospace and defence industry, its sprawling tarmac lined with fighter jets, commercial airliners and autonomous drones. In the pristine white chalets along the flight line, aerospace executives, government officials and military delegations gather to strike deals and discuss the geopolitical forces shaping the future of aviation. Delegates say they expect this year's event from June 16-20 to be more sombre and several public activities to be scaled back after last week's air disaster, when an Air India Boeing 787 crashed shortly after takeoff, killing over 240 people. Investigators are gathering data on the engine, wing flaps and landing gear, though it is too early to draw conclusions, a source familiar with the matter told Reuters in India. India's aviation regulator has ordered safety checks on the airline's 787 fleet. The industry has also been shaken by missile strikes between Iran and Israel, which erupted on Friday - just a day after the India crash - forcing carriers to cancel or divert thousands of flights in the latest upheaval to travel in the region. Aerospace and defence executives are also grappling with uncertainty over U.S. President Donald Trump's shifting tariff policies, which many say have been impacting aircraft, engines and parts, disrupting global supply chains, driving up production costs and straining international partnerships. The show's opening coincides with the 10th anniversary of Trump's first run for office in 2015 ahead of his first term. But it is the trade policies of his second term that have caused the industry to defend its previous tariff-free status, as a pause in his "Liberation Day" tariffs nears a July 8 deadline. AIRBUS POLAND WIN EXPECTED Boeing's CEO Kelly Ortberg and Commercial Airplanes boss Stephanie Pope cancelled their trip to Paris and the U.S. planemaker is scaling back its schedule at the event as it focuses on supporting the India crash probe. The planemaker is eager to keep a low-key presence and avoid any jarring publicity, though it was too late to remove Boeing advertising banners dominating the venue. Behind Boeing's chalet at Le Bourget, a gleaming Riyadh Air 787 sits on the tarmac. Boeing is emerging from back-to-back safety, industrial and corporate crises triggered by fatal accidents involving the smaller 737 MAX, which is a separate model to the newer 787. Aircraft deals will still be announced at the show, where European politics are also driving some of the discussions. Sources told Reuters that Poland is expected to announce Airbus as the winner of a landmark deal to sell around 47 A220 jets to state carrier LOT - part of a wider reset of relations between Poland and France, where Airbus has its headquarters. Brazil's Embraer had pushed hard for the deal, the people said. None of the parties agreed to comment. Airbus is also the front-runner against the same planemaker for a potential order for dozens of A220 jets from AirAsia, with Airbus reviving a proposal for a tighter 160-seat cabin layout while separately showing airlines a stretched version featuring existing Pratt & Whitney engines, sources said. Airbus was also expected to kick off the event with two Saudi orders from AviLease and Riyadh Air. Boeing has shelved most announcements including a fleet shake-up by long-time customer Royal Air Maroc, but had already been heading for a quieter week than Airbus after pre-empting the show with big orders during Trump's recent Gulf visit. The air show is also an opportunity for established and emerging defence and space companies to showcase cutting-edge technologies such as AI and autonomy. (Reporting by Joe Brock, Tim Hepher, Paul Sandle, Giulia Segreti. Editing by Mark Potter)
