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A delegation from the Press Union visited Captain Awni Al-Kaki, George Solagh, George Bashir and Philip Abul Akl, 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.
In turn, he thanked the security of the trade union delegation "because you transmit to our public opinion our scientific and objective point of view, we make no proposal that is not supported by figures and facts."
"Lebanon has gone through some very delicate circumstances in recent years, especially since the badbadination of Prime Minister Rafic Hariri, the war of 2006 and the global economic crisis, and we know that all this has left its mark on Lebanese economy and on the financial situation. "There is a global situation affected by the situation in the region, and Lebanon bears its consequences through the sanctions laws that have been adopted, and you all know them. "
Exchange Rate Stability
Stability of Credit and Integrity of the Banking Sector and Contribution to the Solvency of the State.You know that 69 deposits in Lebanese banks are in foreign currency and mainly in dollars.And the bulk of loans, or 80 in foreign currency.When we address the financial and economic conditions, we can not ignore the story, because they affect the sentiment of investors and consumers.
adds: "The Lebanese economy is financed in a currency other than the Lebanese currency, and the approach of the Bank of Lebanon to maintain monetary stability must be taken into account. Anyone who speaks about correction should know that whatever corrections I make, if we can not attract money to Lebanon, we will not be able to achieve our goal, that is to say that we will not reach the cost of production. The profits will increase because the risks have increased, the economic situation has deteriorated and we have not won anything.
In front of this scene, there is a national and official demand supported by the Bank of Lebanon to maintain the stability of the exchange rate of the lira, since most Lebanese incomes in Lebanese pounds, and any change in the exchange rate or weakening the lira impoverishes these citizens, And economic gains are not achieved in return. The Bank of Lebanon is still striving to have reserves in US dollars, so the stability of the exchange rate is not a slogan, but it is based on facts and figures.
Assets in foreign currency
And if the Lebanese market has no Lebanese currency, if all currencies are converted into dollars, all Lebanese banks with Lebanese badets in Lebanese pounds up to In 2020 will not exceed 15 to 16 billion dollars. We can therefore see in this equation that the Bank of Lebanon is controlled by the exchange rate of the pound, and that all the talk about a risk affecting the exchange rate of the lira is not based on numerical bases. . "We are not talking about something that is not supported by the numbers, and they are talking about the collapse of the pound or the falling exchange rate."
"The monetary approach of the Bank of Lebanon And it was not possible not to increase because it has increased globally and in the region as a whole.If Lebanon wants to ignore and resist at 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 polarization.We have a strong banking sector which fulfills all the conditions laid down in Basel III.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 GDP, but bad debts In the same cases, we have seen in recent years, 3% and a half of the credit portfolio, and in the worst cases, reach 4, ratio that the sector can contend with. "
He points out that" the Bank of Lebanon is in the banking sector, its functions, to maintain the law of money and credit, and the banks to meet the specified task at l 39; Article 70 of the Code of Money and Credit, which is to maintain the stability of armaments. 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, from where does it come from funds 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 bankruptcy policy, deposits have grown remarkably and account for more than three and a half times the GDP." At the state level, the Bank of Lebanon should always measure its interventions with the state according to its objectives and the liquidity management it brings to market, and confirm that liquidity placed on the market can not be opened on all sides. "[19659002] The housing crisis
and the housing crisis: "We put in place a financial package in 2018 but there was a demand for more money," he said. A lot of what we put, we put the amount of $ 500 million and the demand was $ 800 million And we agreed with the banks to face the $ 800 million, to bear the cost of $ 300 million, and at the same time the Bank of Lebanon and conclude the 2019 package, and issued a circular on this and all requests were met,
He stressed that "the remaining soft loans are outstanding and unfinished," That is to say that loans that have to do with the support of tourism, agriculture, industry, the environment and productive sectors still exist, The market still uses them.The banking sector in Lebanon and outside of Lebanon, where it does not have banks abroad, fails and the compliance system we put in place was accepted and welcomed by similar banks.The Bank of Lebanon does not say not yet a financial package, we will continue to support the economic situation, which is part of our liquidity injection policy and we will see by 2019 how much we can inject liquidity without create inflation. We hope that every Lebanese will have their own house, and thanks to the support we have given to the housing sector, 130,000 households were born in Lebanon, thanks to our monetary policy, the last 13 months were supported by two billion dollars. Million home 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 area and a more realistic approach to benefits. "
" We have succeeded in finding the appropriate mechanisms that do not harm Lebanon or the Lebanese and respect the laws that are enacted outside Lebanon and other criminal laws, and we have thus succeeded to preserve Lebanon in the banking world. You know today that it is a job that requires a lot of effort, and it is the economic and financial pressures that determine the real war: despite all these difficulties, Lebanon has been able to exist thanks to this representative system. "
" It is not only the Bank of Lebanon that confirms the soundness of the financial situation, but also the external institutions. "
The situation in Lebanon was considered stable, Salameh said that the role of the media "The opinion of the public opinion and the building of confidence in the country and other topics that I can not address to not engage in conflict in Lebanon and the Bank of Lebanon a pillar of power beyond politics. "All Lebanese and the Anti-Money Laundering Investigation Commission are fighting corruption when it crosses the banking sector, and the Bank of Lebanon has taken initiatives to cancel the banks and freeze the accounts suspected banks. "
that is to say the compliance regime that we have developed which takes into account the issue of corruption, if we want to maintain the stability of the exchange and transfer, we must take this into account. We consider the Cedar Conference useful for Lebanon because it has put in place low-cost funds to rebuild infrastructure without infrastructure, without productive economy and 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 any role, it is the Lebanese government 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 off the market, Lebanon's debt is below that 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, if we maintain an atmosphere of trust, the benefits are low."
"Lebanon can finance itself but at a higher cost Administration for the benefit of Lebanon"
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