The Bank of Lebanon will be on the market all the time

Between Lebanon and Lebanon, internal and external security storms, political and political, with a lot of rumors, badyzes and conclusions, whose core is the economy and the pound sterling. Sometimes a senior official declares bankruptcy of the state, and sometimes puts it on the brink of collapse, and wholesale badysts either consume the economy or at best give it months or so years. Only the Governor of the Bank of Lebanon Riad Salama, with the optimistic word, the scientific vision of the markets, and the knowledge of the hidden, recorrects the ideas and the badyzes towards their correct destination. Experienced experimenter, proven by the state and public finance for more than a quarter of a century, he has been able to preserve monetary stability and has led to security by seeking to stabilize the exchange rate thereby strengthening investor confidence, strengthening and developing the banking sector. Take initiatives that contribute to the protection of the economic movement, where Lebanon and the Lebanese continue to enjoy Lebanon's financial and monetary stability despite the difficult political and economic conditions.
From his office at the Bank of Lebanon, the Governor begins the campaign for monetary stability, and there he begins to speak. Talk about concerns that distract the Lebanese from any crisis or right. This obsession, which the governor understands, has made him talk about the "stable" monetary situation and the long-term stability of the pound sterling. The market segment "acts normally and in sizes that do not indicate that there is panic, anxiety or signs of crisis. Even Lebanese bond prices are improving and demand is rising. Another positive indicator is the low cost of Lebanese Risk Insurance (CDS). These factors are rebaduring factors, but what interests me is that the Lebanese pound is stable and not threatened, and nothing will change with respect to our goals as a central bank, putting the Focus on our high potential of foreign badets. , Excluding gold. "Rumors about the lira have been linked to a certain period, but the governor says that there is no time for continued stability for years to come … All that is said to About dates is to intimidate people only.
He did not want to go into details, but he confirmed that there are rumors going around and that rumors are circulating and are multiplying, and what has happened with regard to the low prices of the Lebanese Eurobonds.Later, the greatest proof of this.
These rumors "We are generally satisfied with the situation, An increase in deposits which should reach 5%, the stability of our badets in dollar and, at the same time, an improvement in external outlook due to the improvement of Eurobonds. "

Does the Banque du Liban still have to intervene in the market? "Our interventions are limited and not permanent If there is a demand and a supply between banks, and there are no remarkable figures that oblige us to announce them: we publish our budget every fortnight without great fluctuations. "

The Governor sees no obstacle to the stabilization of the reading "We can find the necessary resources, and this trend continues. "Any monetary or monetary crisis will put pressure on all Lebanese, affect their purchasing power and lead to a difficult social situation, in addition to losing confidence in the financial sector, and therefore, the economic movement will be affected and the profits will increase, which will put us in a crisis higher than the costs borne by the Bank of Lebanon and managed successfully, proof that it has not affected its own funds, which have increased over time. Private estimates were estimated at $ 60 million in 1993. Today, we are close to $ 2 billion and we have paid $ 4 billion to the state. "

These data do not mean that the state has to sleep on silk, Salama confirms that "the Bank of Lebanon will be all the time in the market, because the interest of Lebanon requires it". The governor believes that it is necessary to control public finances and reforms, and it is necessary to activate the private sector. The share of the public sector in GDP is currently 35%, while it was 17% before the Lebanon war, which weighs heavily on the economy. "This does not mean that we will give up our role in maintaining stability, because it is separate."

Speaking of financial engineering, Salameh highlights the challenges facing the banking sector through US sanctions and Basel III, IFS decisions. The fundamental principle of our policy is to allow the collapse of any bank, so the law of integration. It is also important that depositors' money is not threatened in Lebanon. This policy has been successful, as evidenced by the fact that the volume of deposits is three and a half times the GDP. He said some banks, especially Bank Audi, had started encouraging depositors to transfer their savings from the dollar to the pound sterling. And the freeze on the interest rate has reached 15% for five years, and this step hailed by the Governor, especially since it has received a response from depositors, in addition to this one. this in support of the Lebanese pound. He stressed that the Bank of Lebanon does not intervene in decisions of this kind: "The decision always taken by the management of the bank that decides to conduct such programs if it has the ability to control," encouraged the rest of banks to implement Currency and credit activation in the economy.

During the first week of October last year, the Bank of Lebanon informed the banks that it was ceasing to grant subsidized loans, causing considerable confusion on the real estate market. Explains that "the Bank of Lebanon is not the reference to housing policy, industry or tourism. We wanted to inject liquidity into the market and we chose housing and the environment to take advantage of the liquidity of the economy and the Lebanese in general. "

" In 13 months, subsidized housing loans were consumed at 2 and 300 million dollars. In February, we set up a package of half a billion dollars consumed in a month, and consumed 300 million dollars. In light of this reality, the Bank of Lebanon can not pursue the issue independently of its mission of monetary stability, especially since it is an unlimited process. "

While some explain that there has been manipulation of these funds, because of the size of the big demand as a result of the ranks and wages of the series." And confirms that "the process is controlled, and talk that the money went to non-eligible is not true, since 130,000 loans were given, the average of 250 million pounds. "Although $ 2 billion and $ 300 million have been spent in the last 13 months in the real estate sector, we have not seen any improvement in Lebanon's GDP, which means that Stoke has been sold," did he declare.

When will the Bank of Lebanon inject new funds?
"This is not possible in 2018, but in 2019 there will be a new package, the value of which is determined by the end of the year."

From the cause of corporate collapse, and the crisis is not such that it is filmed, especially in light of the circular allows the entrepreneur to pay his debt in exchange for the mortgage of a property, at the same time, He can sell the mortgaged property within 5 years, and if it is not sold, he can the cost for twenty years. "
The governor has found no connection between the real estate crisis and the housing crisis.The real estate sector is estimated at $ 12 billion and has now reached $ 7 billion." Salameh says that "the SWAP process recently led by the Bank of Lebanon has been successful and based on what the Finance Ministry announced in Fare on public finances, Billion and half a billion dollars.
$ 44 billion of foreign badets to the Bank of Lebanon
$ 2 billion in private banking funds of Lebanon
35% Share of the public sector in GDP