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Ya Libnan
30-03-2025
- Business
- Ya Libnan
Karim Souaid named central bank governor
Karim Souaid was named as Lebanon's new central bank governor on Thursday, receiving 17 out of 24 votes in Cabinet, after Prime Minister Nawaf Salam's opposition to his appointment prevented consensus over the move. According to Al-Jadeed TV, Souaid received the votes of the ministers of the Lebanese Forces, Hezbollah, the Amal Movement, the Progressive Socialist Party and the Kataeb Party, in addition to the ministers who are close to President Joseph Aoun. Salam, Deputy PM Tarek Mitri, Culture Minister Ghassan Salameh, Social Affairs Minister Hanine al-Sayyed, State Minister for Administrative Development Fadi Makki, Economy Minister Amer al-Bssat and Education Minister Rima Karami meanwhile abstained from voting, MTV said, adding that Interior Minister Ahmad al-Hajjar voted for Souaid. Aoun and Salam had failed to reach a consensus over a candidate according to reports, despite holding a meeting prior to the session. 'The meeting between President Aoun and PM Salam did not lead to consensus over the appointment of a central bank governor and the president is insisting on putting the file to a vote in Cabinet,' Al-Jadeed said. Al-Akhbar newspaper reported earlier on Thursday that Salam had threatened to take an 'escalatory step' or even 'resign' should the matter be put to a vote in Cabinet. But ministerial sources told the daily that resignation is out of the question and that Salam only threatened it to 'prevent Aoun from taking unilateral decisions that disregard the premier's opinion.' 'Tensions had surged after the PM sensed that the chances of Souaid are high domestically and externally, knowing that local parties had launched a campaign against him over the past two weeks, accusing him that he is the candidate of banks and that he rejects any agreement with the International Monetary Fund,' Al-Akhbar said. Media reports also said that he 'lacks foreign support, specifically U.S. support, which was expressed by U.S. ambassador to Beirut Lisa Johnson to Finance Minister Yassine Jaber, when she called Jihad Azour a wonderful choice.' Born in 1964, Souaid officially takes over after embattled former chief Riad Salameh's term expired in July 2023 with no designated successor. Divided politicians have since failed to agree on a permanent replacement for Salameh, who has been accused at home and abroad of financial crimes. First vice-governor Wassim Manssouri had been acting head of the central bank, a post that is traditionally reserved for a Maronite Christian in Lebanon's sectarian power-sharing system of governorship. Souaid is the founder and managing partner at Gulf-based Growthgate, according to his biography on the private investment firm's website. It says he previously worked at financial establishments, including HSBC Bank, and has been involved in privatization initiatives in a number of Arab countries. He studied law at Lebanon's St. Joseph University and at Harvard Law School in the United States, according to the biography. He has also worked as a corporate finance attorney in New York, and is a member of the New York State Bar Association, it says. Some local media have reported that Souaid is close to the banking sector and members of Lebanon's entrenched ruling class. Lebanon's new authorities need to carry out reforms demanded by the international community to unlock bailout funds. The economic crash since 2019 has seen the local currency lose most of its value against the dollar and pushed much of the population into poverty, with people locked out of their savings. In April 2022, Lebanon and the IMF reached a conditional agreement on a $ 3-billion loan package, but painful reforms that the 46-month financing program would require have not been undertaken. Earlier this month, the IMF welcomed the new Lebanese government's request for support in addressing the country's severe economic challenges. In February, it said it was open to a new loan agreement with the country following discussions with its recently appointed finance minister. Beirut-based think tank the Policy Initiative in a statement Wednesday, said that the nomination of central bank chief would 'test the new government's commitment to genuine reform.' 'The next governor will shape Lebanon's urgent reform agenda, serve as the main counterpart to the International Monetary Fund, and directly engage in sovereign debt restructuring negotiations' alongside the finance ministry, it said. The central bank governor in Lebanon is named by cabinet decree for a six-year mandate that can be renewed multiple times, based on the finance minister's recommendation. Depositors' rights PM Salam announced Thursday that he did not support the appointment of Karim Souaid as central bank chief for 'a host of reasons,' including 'keenness on protecting depositors' rights and preserving the state's assets.' 'I voiced reservations over his appointment, along with a number of ministers,' Salam said after a Cabinet session in which Souaid received 17 votes out of 24. 'Any governor must abide by the financial policy of our reformist government as expressed by the ministerial statement, in terms of negotiating on a new program with the International Monetary Fund, restructuring banks, and devising a complete plan according to the best international standards to preserve depositors' rights,' Salam added. He also said that the government has approved a draft law aimed at amending the banking secrecy law. 'This is our policy, and the governor must abide by it. The Lebanese have asked us for reform, and we insist on reform,' Salam went on to say. AFP
The National
27-03-2025
- Business
- The National
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.
Russia Today
08-02-2025
- Business
- Russia Today
Lebanon forms first complete govt in more than two years
Lebanon has formed its first full-fledged government since 2022, as the country works to rebuild its devastated southern region and ensure security in the aftermath of fighting between Israel and Hezbollah. President Joseph Aoun announced on Saturday that he had accepted the resignation of the former caretaker government and signed a decree formally inviting the new Prime Minister Nawaf Salam to form a government. Government posts in Lebanon are allocated based on sectarian affiliations. The president must be a Maronite Christian, the prime minister a Sunni Muslim, and the speaker of parliament must be a Shiite Muslim. Salam formed a new cabinet of 24 ministers, five of whom are women, less than a month after he got the top job. Read more Lebanese parliament elects new president The breakthrough follows more than three weeks of political deadlock, particularly regarding the selection of Shiite ministers, traditionally chosen by Hezbollah itself and its ally, the Amal party. Since 2008, Hezbollah and Amal have held one-third of cabinet seats, allowing them to veto decisions and dissolve the government. According to media reports, this time Salam refused to meet their demands. The announcement comes just a day after the US deputy Middle East envoy, Morgan Ortagus, insisted Hezbollah be omitted from the new cabinet. While visiting Lebanon, she also thanked Israel for dealing a devastating blow to the group. Her visit sparked criticism when photos of her wearing a Star of David ring emerged on social media. Read more Bloodshed and a hope for peace: What does 2025 hold for Israel and the Middle East? Lebanon has been battling an economic crisis since at least 2019, exacerbated by the 2020 Beirut port blast that killed more than 200 and destroyed a large section of the city. Combined with the Covid pandemic and civil unrest over allegations of government corruption, it has left the nation struggling to address a slate of issues that have crippled its economy. In October 2023, Hezbollah joined Hamas in its war against Israel and fought a low-intensity campaign against the Israel Defense Forces (IDF) along the 'blue line' separating Lebanon from Israel and the Golan Heights. The conflict escalated in September when Israel bombed Hezbollah strongholds in southern Beirut, killing many top commanders. Hezbollah signed a ceasefire with Israel in late November, agreeing to withdraw from southern Lebanon between the 'blue line' and the Litani River, allowing only the Lebanese Army and UN peacekeepers in the area.
