Latest news with #FrançoisVilleroydeGalhau
L'Orient-Le Jour
02-05-2025
- Business
- L'Orient-Le Jour
French expertise 'crucial' for Lebanon's recovery, asserts Souhaid
BEIRUT — New governor of Banque du Liban (BDL), Karim Souhaid, announced in a statement that he had met with François Villeroy de Galhau, governor of the Banque de France (BDF), and Bertrand Dumont, director general of the French Treasury, in Paris on April 28 and 29, 2025. This visit "is part of a series of exchanges aimed at strengthening the long-standing relationship between the Banque du Liban and French monetary and financial institutions," wrote Souhaid. "At this critical juncture in Lebanon's economic journey, such partnerships are indispensable. France's in-depth expertise and institutional leadership—particularly in managing and resolving complex monetary and banking crises at the European level—remain of crucial relevance for Lebanon's ongoing recovery process," the statement issued Tuesday evening highlights. According to BDL, these meetings take place in the context of a visit by a Lebanese delegation representing the Lebanese presidency and government to Washington, during the spring meetings of the International Monetary Fund (IMF) and the World Bank (WB) last week. During these days, the delegation, led by Lebanese Finance Minister Yassine Jaber and Economy Minister Amer Bsat, as well as the governor, met with officials from both organizations to advance the reform dossier aimed at reviving the country, in crisis since 2019, and funding reconstruction in Lebanon, severely affected by the war between Israel and Hezbollah. 'Strategic Support' The delegation also met with officials from the U.S. State Department and Treasury, as well as French officials, including Dumont. The BDL noted that these exchanges were constructive. According to the BDL statement, the director general of the French Treasury "reiterated France's willingness to provide strategic support and guidance to improve the institutional efficiency of the Banque du Liban and enhance its role as a credible partner in all matters related to monetary and banking reform." During the meeting at the Banque de France, François Villeroy de Galhau "discussed the role of the Banque du Liban in developing and implementing solutions in close coordination with the Lebanese government, as well as the importance of maintaining a strong and transparent partnership with the IMF," to which the government of Nawaf Salam and President Joseph Aoun, in place since the beginning of the year, have renewed Lebanon's request for membership in a financial assistance program. "The exchanges were constructive and forward-looking. Governor Villeroy de Galhau reaffirmed the commitment of the Banque de France and the French government to support Lebanon and its central bank through relevant advice, strategic assistance, training programs, and the transfer of best practices aligned with international standards. This collaboration is part of a broader effort to modernize institutional frameworks and strengthen the operational capacities of the BDL," wrote the Banque du Liban. A week ago, Lebanon voted on a law updating its banking secrecy legislation, in a manner deemed satisfactory by the IMF. To persuade the Fund to go further, the country must also adopt a banking resolution law, which sets the framework for a sector restructuring aligned with international standards. A draft law, recently adopted by the Council of Ministers, is set to be reviewed Wednesday by the Finance and Budget committee. In another statement issued Wednesday in response to allegations against it in the Lebanese media, the BDL announced it is "working on a first version of a restructuring plan for the banking sector, which will be discussed with Lebanese authorities, the IMF, and international experts," and advocated for a "collective, balanced, and accepted approach by all parties, aiming to guarantee the gradual repayment of deposits and economic recovery." On Tuesday, Yassine Jaber met with officials of the Association of Banksof Lebanon (ABL), to whom he stated that the country's priority was to allow the sector, which had illegally frozen tens of billions of dollars in deposits during the crisis, to start functioning normally again — a message he had also conveyed from Washington. During the spring meetings, Governor Karim Souhaid issued a statement to IMF officials in which he assured that Lebanon was "ready to make difficult choices, to bear the political cost of reform, and to hold itself accountable." He also emphasized that the BDL's top priority is to preserve the state's assets while working, alongside the government and the banking sector, to restore the solvency and credibility of the financial system. The decisions of the central bank before and during the crisis were one of the factors that contributed to the country's collapse.
Euronews
15-04-2025
- Business
- Euronews
France's united front against Mercosur deal starts to show cracks
ADVERTISEMENT France's strong resistance to the Mercosur agreement is beginning to crack in response to concerns over potential restrictions on EU exports to the US. 'Existing and future trade agreements between the EU and other economies (JEFTA [the free trade agreement with Japan], CETA [the free trade agreement with Canada], the free trade agreement Mercosur‑EU) could further cushion tariff shocks linked to US trade policy,' Bank of France's Governor, François Villeroy de Galhau, said in his annual letter to French President Emmanuel Macron on 9 April. In December the European Commission concluded a political agreement with the Mercosur countries - Argentina, Brazil, Paraguay and Uruguay - to establish one of the world's biggest free trade zones, encompassing 750 million people and about one-fifth of the global economy. The agreement now needs approval from EU countries before it enters into force. France has long been opposed to the agreement. In particular, it denounced what it claimed would result in unfair competition for its farmers, calling for so-called 'mirror clauses' to be introduced in the deal, so that agricultural imports coming from the Mercosur meet the same production standards existing for EU farmers. MEP Marie-Pierre Vedrenne (France/Renew), a prominent critic of the Mercosur agreement during the previous legislative term and former chair of the Trade Committee, has adopted a more measured tone recently. 'I do hold a personal conviction: remaining opposed to this agreement on principle alone doesn't seem reasonable to me,' she told Euronews. Officially, France maintains that it is mindful of the evolving global trade context, but its position on the Mercosur agreement remains unchanged. Paris continues to reject the deal. 'The French position has not changed, but the context has and we take it into account,' a French diplomat told Euronews, 'The context is now in favour of the Mercosur agreement, and the Latin American countries are also looking for opportunities as the US market is closing. This must lead us to be ambitious in terms of protecting the environment and our farmers.' This stance was echoed by another French official. The imminent arrival of Friedrich Merz as Germany Chancellor, and renewed EU impetus to diversify global trade partnerships in response to rising US protectionism, has intensified pressure on France and other member states opposing the EU-Mercosur agreement. 'The Mercosur free trade agreement with the four South American countries must come into force quickly,' Merz told German media Handelsblatt on 13 April. Among the countries opposed to the deal, Ireland, keen to protect its farmers, said on 9 April through its Minister for Trade that it would maintain its opposition, and Austria remains opposed, while the Netherlands and Poland are critics of the deal. Italy remains in favour of the agreement, though it wants impact on agriculture to be taken into account in the final text. On Monday, a Commission spokesperson said that the EU executive was not planning to make any changes to the text. The document that the member states will have to approve will be sent to them before the end of the summer, the Commission added. In the meantime, uncertainty surrounding President Donald Trump's ongoing tariff war leaves open the possibility that EU critics of the Mercosur deal may reconsider their stance.
