Salameh Denounces Claims that Lebanon Is on the Brink of Bankruptcy

  • Economics
Salameh Denounces Claims that Lebanon Is on the Brink of Bankruptcy

Central Bank governor, Riad Salameh, on Saturday repudiated statements claiming that Lebanon is on the brink of bankruptcy.

“Proclamation that Lebanon is going into default is scientifically unjustified and unwarranted,” Salameh said following his meeting with Maronite Patriarch Bechara Al-Rahi in Bkirki.

“The Lebanese currency is stable despite all the rumors,” Salameh stressed, elucidating that the reason behind the current financial situation is international trade war whose impact has affected all countries worldwide.

“As usual, there are always negative rumors in the Lebanese markets. The Bank sector will not be affected by the International rating agencies’ classification of Lebanon,” he said.

The Central Bank Governor asserted that Lebanon is preserving and developing its compliance system and is keeping a good relationship with foreign countries.

“We underline stability based on existing figures and data of the proactive efforts which the Central Bank is conducting,” he pointed out.

“We have a good and stable deposit base and we can say that it is the best in the region. Our assets are also unwavering,” he stressed.

“The monetary stability is not enough to revive the economic, social and ethical situations in the country. The government is capable of providing a good balanced and fast policy,” he stated, hoping that it will resume its meetings as this stage is highly critical and requires wisdom, courage and discretion.

“The International Monetary Fund expects that the economic growth in the Middle East to remain subdued at 1 percent in 2019, which was a low percentage and we got affected by it,” he indicated.

“The public sector needs to reinvigorate and support the private sector. The adoption of the 2019 state budget, the electricity plan and the CEDRE conference were all initiatives able to create necessary reforms to reduce the deficit and also to reactivate entrepreneurship in Lebanon,” he affirmed.