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A delegation from the Press Union visited Captain Awni Al-Kaki, George Solagh, George Bashir and Philip Abe Akel, Governor of the Bank of Lebanon Riad Salameh, and made a presentation on financial and economic conditions . And it's a pride for all of Lebanon to have Riad Salameh, who rang his bell on Wall Street. "We are in the most difficult phase, and everyone is waiting for your opinion to look at the overall situation."
Salameh said, "Thank you for pbading on our scientific and objective opinions to the public." Lebanon has been going through difficult times in recent years, particularly since the badbadination of Prime Minister Rafic Hariri, the 2006 war and the economic crisis. We know that all this has left accumulations that we can not ignore and that have an impact on the Lebanese economy.There is a global situation affected by the situation in the region, and Lebanon suffers the consequences. by criminal laws, which you all know
Faced with all this, the Bank of Lebanon's mission is to maintain exchange rate stability and the stability of the banking sector.You know that 69% of deposits in Lebanese banks are in foreign exchange and mainly in dollars and most of the loans, ie 80% in foreign currency.
The Central Bank, when establishing its policies and objectives, is b asia on the Lebanese reality and the monetary reality is not isolated from the country's overall situation. "
He adds:" When we approach the financial and economic conditions, "The Lebanese economy is financed in a currency other than the currency of Lebanon, and the approach of the Bank of Lebanon to maintain the Monetary stability must be taken into consideration.Whoever speaks of correction must know that I have corrected the criticisms: if we can not attract dollars to Lebanon, we will not be able to achieve the goal we pursue, what which means that we will not change the production costs in the country.The interest will increase because the risks have risen, the economic situation has deteriorated and we have not won anything.
Faced with this situation, a national and official demand supported by the Bank of Lebanon to maintain the stability of the exchange rate of the lira, as most Lebanese have their income in Lebanese pounds, and any change in the exchange rate or the exchange rate. a book devalues these citizens, And the economic gains are not achieved in return. "The Central Bank has badets of $ 24 billion in foreign currency, and the Lebanese market has no Lebanese currency," he said. "The Central Bank has badets of 24 billion dollars in foreign currency, If we all want to convert to the dollar, all Lebanese banks, the value of badets in Lebanese pounds until 2020 does not exceed 15 to 16 billion Therefore, you can see in this equation that the Bank of Lebanon is controlled by the exchange rate of the lira, and all the talk about a risk affecting the exchange rate of the lira is not based on Digital Principles.
"The Bank's approach to monetary conditions is also based on the market and profits in Lebanon have increased, but they have increased in an acceptable way."
"We're not talking numbers that talk about the collapse of the pound. And it was not possible not to get up as it has increased globally and throughout the region. If Lebanon wants to ignore and resist this atmosphere, it loses its attractiveness to attract deposits … Today, all international institutions support this approach because it considers that the element of power is the polarization .We have a strong banking sector that meets all Basel III requirements. And our financial system does not suffer from a lack of liquidity or certain financial risks and if we take loans, we find that the banking sector has led the private sector to $ 60 billion, more than the GDP, but Doubtful debt is still bland The same as in recent years, accounting for 3% and a half of the credit portfolio, and in the worst cases can reach 4%, a ratio that the sector can control. "
He points out that" the Bank of Lebanon is in the banking sector, its functions, to maintain the law of cash and credit, and to the banks until it fulfills its specified task in Article 70 of the Code of Money and Credit, which is to maintain the settlement of the settlement. No economy can grow and develop if it does not have a strong banking sector. We have also talked about the currency, and if there is no fixed currency, the confidence and the benefits increase. If the banking sector is not healthy, where does the money come from to finance the economy? "Our policy is clear and we will not ruin the banks, and this decision is supported by a formal decision, by a law in the House of Representatives on the merger of banks, because there is a formal decision in Lebanon that we do not want bankruptcies. "
"Since the advent of banking bankruptcy, deposits have grown remarkably and account for more than three and a half times GDP." At the state level, the Bank of Lebanon still has measure its interventions with the state according to its objectives and the liquidity management it brings to market, and we confirm that liquidity placed on the market can not be opened on all sides. "
He tackled the housing crisis. "We put together a financial package in 2018, but there was a much higher demand for money than we did.Million $ was the demand $ 800 million in housing loans, and we agreed with Suck To cover the cost of $ 800 million, bear the cost of $ 300 million, and at the same time Bank of Lebanon and enter the package in 2019, and has published a circular in this case and all requests s have been satisfied, and the demand is expected to increase
The remaining subsidized loans are outstanding and unfinished, that is, loans related to tourism, agriculture industry, the environment and the productive sectors still exist and the market still uses them. The banking sector in Lebanon and outside of Lebanon, where there are no banks abroad, works with it, and the compliance system that we have established is acceptable and comfortable with similar banks
. In our liquidity policy, we will see in the light of the 2019 budget how much we can inject liquidity without creating inflation.
History comes down to possibilities and we hope that every Lebanese will have their own home, mainly through support to the housing sector. A house for the Lebanese, and all that has happened thanks to our monetary policy, The last 13 months have been supported by the equivalent of two billion and 300 million dollars of housing loans. The Bank of Lebanon does not turn its back on this question, it exists, but it must be logical with itself and with the protection of the overall financial situation.
The process requires discipline in this sector and a more realistic approach in terms of benefits.
And you know today that it is a job that requires a lot of effort, and the financial and economic pressures are those that are not in Lebanon. Who decides the real war, despite all this "The international community is following the situation of Lebanon and gives its opinion and its prospects in Lebanon, saying that the situation is stable and that is explained by the stability of a strong monetary situation and requires reforms so that we can have "It is not only the Bank of Lebanon that confirms the financial situation, but also the external institutions."
On the role of media, Salama pointed out that "it plays a key role in the public opinion and builds confidence in the country, I must touch it so as not to enter the arms-of-war Lebanon and the Bank of Lebanon, one of the pillars of his power after politics, and any speech on any subject is interpreted as a political intervention, and we work for the benefit of all Lebanese and all Lebanese.
We are not aware of this situation, and this is part of what we have talked about, the compliance system that we have developed that takes into account the issue of corruption. Keep this in mind. "We consider the Cedar Conference useful for Lebanon as it has put in place low-cost funds to rebuild infrastructure, without infrastructure, without productive economy, without economic growth."
"The role of the Bank of Lebanon is not specific to the conference.If the government wants the Bank of Lebanon to play a role, it is it that determines it.If we look at the debt in the market, we see that what is officially said is about 80 billion, but the market debt has to be deducted outside the market, Lebanon's debt is lower than this value and can reach 50 billion In Lebanon does not fully reflect the economic activity, because not all companies are subject to billing. "Domestic production is over $ 53 billion and estimates range from $ 60 to $ 70 billion, and if we maintain an atmosphere of confidence, the benefits are low. "
He concludes by saying that" Lebanon can finance itself Administration for the benefit of Lebanon. "
Lebanon
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