Latest news with #KarimSouhaid
L'Orient-Le Jour
02-05-2025
- Business
- L'Orient-Le Jour
Finance Committee begins examining the banking resolution bill
The parliamentary Finance Committee, chaired by MP Ibrahim Kanaan, began examining the banking resolution bill on Wednesday, which aims to establish the legal framework for restructuring the sector that has been virtually bankrupt since the socio-economic crisis in Lebanon started in 2019. "This long-awaited law was submitted to us by the government a few days ago. The session was convened immediately after my return from Washington, in a positive international atmosphere following the adoption of recent modifications to the banking secrecy law," said Kanaan after the meeting. "This allowed for an immediate review of the articles of the banking reform law in the presence of all concerned parties, except for the Governor of the Central Bank (Karim Souhaid), who apologized citing a trip, and plans to personally attend the next committee session to present his observations on the government's version," Kanaan added. He also called on the government to submit a "financial settlement" bill addressing the issue of the return of bank deposits blocked by the sector. The Lebanese Forces parliamentary bloc (LF), represented in the government and the committee, said in a statement that it "will make every effort to discuss the articles of this bill, point by point, and reach an agreement with other blocs with the aim of completing its discussion and having it adopted as soon as possible." Finance Minister Yassine Jaber and the chair of the bank control commission participated in this first meeting. They were part of the delegation, along with Karim Souhaid, representing the executive and the presidency, which traveled to Washington last week during the International Monetary Fund (IMF) and World Bank (WB) spring meetings to discuss with representatives of the two organizations as well as American officials, among others. The week's outcome was positive after Parliament voted for a law regulating banking secrecy, purged of some problematic amendments that were introduced a few days earlier by MPs in a parliamentary committee.
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.
