Safir expects bank deposits to be recovered once the budget is approved

Lebanese bank deposits are expected to recover after a drop in the state budget after optimizing the government budget, said the boss of the Association of Banks in Lebanon, Salim Sfeir, to Reuters.

"Deposits have fallen to $ 179 billion by the end of May, up from $ 179 billion at the end of May," Sfeir said, noting that "he expects a very positive and positive recovery. that the Lebanese market is very flexible ".

"Banks will take steps to support the economy over the next four to seven months, including lowering interest rates and offering more loans to certain sectors," he said. .

"Banks have sufficient liquidity and are optimistic about their ability to give the necessary impetus to the recovery of the economy," said Sfeir, also managing director of Beirut Bank.

Lebanon, burdened by one of the world's highest debt ratios, finally approved last Friday the 2019 budget, which aims to reduce deficits as part of efforts to ensure the sustainability of public finances in a sustainable manner.

The government has initiated delayed reforms, with stagnation of the economy and a slowdown in deposit growth in the banking sector. The sector has long played an important role in financing government and broader economic needs.

"There were a lot of worries," Sfeir said, adding that "concerns have been expressed about the requirement of additional benefits for depositors and the withdrawal of some of their deposits."

"In the last 48 hours, I have felt that the markets and the population were calmer and that the transfers from the Lebanese pound to the US dollar were below normal," he said.