Central Bank Governor Riad Salameh: the separation between p

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Central Bank Governor Riad Salameh: the separation between politics and the economy strengthens the central site
September 23rd, 2011 09:22 am · Posted in NEWS (Iraq & World Currency)
Work of the governor of the Bank of Lebanon since 1993, and in the most
difficult circumstances, where politicians compete and Atqasfon, which led to
the demolition of the country’s economy, Votal his presence to turn the
situation upside down .
banking stability since he took office
purify the Lebanese banking sector less costly and more intelligent, remove 29
banks from the market carefully and without a loss. The side of the banking
sector in Lebanon, the repercussions of the global financial crisis still warns
of damage to foreign investments, due to the continuing financial crisis in the
countries of Europe. Gave the initial liquidity in the banking sector and not
for profit. And making the cost of insurance on the credit risk of Lebanon after
the fall of confidence to make it up the monetary and banking situation. After
making the growing confidence in the banking sector, contributed to the decline
in credit encouraged the dollarization and lira. Reduce interest rates, making
the state’s inability to drop after lower interest income and the city of
Lebanese and foreign currencies and achieved an increase in profitability of
banks in 2010 for 2009 and 2009 than in 2008. Also made ​​in foreign currency
reserves at the Bank of Lebanon exceeds $ 30 billion for the first time in the
history of the Central Bank. It Riad Salameh, Governor of the Bank of Lebanon,
which singled Qabas speech comprehensive emphasizing a policy of distancing Bank
of Lebanon to engage in internal political conflicts, and this approach in the
policy has proved he will continue in his duties as governor of the Bank of
Lebanon for the period of the fourth, which extends until 2017 .
He said
that the banking sector Lebanon has faced many difficulties and obstacles as a
result of domestic and foreign crises, he roamed through policies and financial
architecture and make the right decisions and circulars issued by the Bank of
Lebanon, all intended to check the banking sector and fortify the national
currency. He added that the policy pursued by the Bank of Lebanon prevented the
announcement of any bank bankrupt while out of the market more than 33 banks
through mergers, backed by the Bank of Lebanon, soft loans of the bank merging .

revealed the safety of the Lebanon line with the Basel 3, to maintain the
sector has the confidence of each dealing with him, pointing out that the
solvency ratio required in achieving Basel 3 is currently in Lebanese banks, and
we have been working for years on grounds similar to those adopted in the
courses mentioned. The following is a transcript of the interview :
What
about the potential risks of political crisis in Lebanon, and whether Lebanon
has been stable on the level of cash in light of the changes in the political

arena? since the first day of Tzlma my duties at the head of Governor of the
Bank of Lebanon in August of 1993, made ​​sure that pursued a policy of
distancing Bank of Lebanon to engage in internal political conflicts, and this
approach in the policy proved its worth, which will continue in my duties as
governor of the Bank of Lebanon for the period of the fourth, which extends
until 2017 .
The Lebanese banking sector has faced many difficulties and
obstacles as a result of crises, domestic and foreign, but roamed through
policies and financial architecture and make the right decisions and circulars
issued by the Bank of Lebanon, all intended to check the banking sector and
fortify the national currency. Today, we must therefore continue to maintain
Lebanon’s reputation and stability of cash .

Is Lebanon before the
economic risks lead to landslides, as some analysts expect, or the opposite is

true? has influenced events in Lebanon in the past on its financial
position, but today’s drop affected by economic and financial situation of
political realities, This is for the interest of Lebanon and the Lebanese .

I saw the Lebanese, we were able to build financial, banking and achieved a
reduction in benefits and maintained this reduction despite the difficult
political circumstances, and this confirms that we have succeeded to a large
extent in the separation between politics and the economy .
I want to
reassure analysts that there is no any bank is threatened in Lebanon or the Bank
is preparing measures against him, that’s for sure, and I am confident that our
financial sector will remain bound by any international resolutions issued by
the Security Council .

What is your assessment of the political
landscape now in Lebanon under the government of Prime Minister Najib

Mikati? what we have heard since form a new government and the Co-Michel
Suleiman, Mikati is precisely the militancy that Lebanon is committed,
cooperative and respectful of international legitimacy, and Lebanon is a
founding member of the United Nations. I do not see any concerns can now have a
negative impact on his financial stability of his criticism of the national .

investment opportunities
to investment opportunities in Lebanon now,
and do you expect to increase investors in the near
future? nothing new to
say that Lebanon is counting on investments, but is working to encourage
engagement in investment and employment in many areas .
Lebanon has great
potential and policies conducive to capital investment. It is not right to
forget that Lebanon is to avoid falling into the clutches of the global
financial crisis, making it an attractive plant for capital and investment.
Lebanon enjoys political stability and security despite the circumstances that
surround us .

Is there a problem of inflation in prices, whether high
oil prices and prices of raw materials associated with
it? from the outset,
were determined monetary stability and preserve the people’s money and care not
to lose any deposited money in Lebanon .
Today, we are seeing the dollars we
have before us for the benefit of the lira, and signals a strong send markets
translated thus a sense of reassuring in the direction of the financial
situation and the national currency .
the performance of banks

deliberately Bank of Lebanon within its legal power to contribute to
establishing the right climate for business development and the labor market in
Lebanon, is still the situation
exists? have contributed to the Bank of
Lebanon and the banking sector in securing high growth over the past years, the
growth in lending tool to achieve this. The banking model that we have built
through the circulars issued by the Bank of Lebanon to prevent our sector
exposure to the crisis that has rocked global financial markets, and continues
to threaten more references of the international financial .

What is
your assessment of the performance of the banking sector in
Lebanon? proved
the banking sector in Lebanon that he was able to take responsibility and absorb
the lessons which the world is witnessing. Numbers are proof of this, Fathoalat
the Lebanese to their home country, surpassed the $ 8 billion a year and gross
domestic product is estimated at 40 billion. These figures put Lebanon in the
forefront of Arab non-oil terms of per capita income .
Has the Lebanese
banks positive results in 2011 at the operational
level? The policy pursued
by the Bank of Lebanon prevented the announcement of any bank is declared
bankrupt, while out of the market more than 33 banks through mergers, backed by
the Bank of Lebanon, soft loans of the bank merging .
useful to recall that
Lebanon’s banking group of 26 Lebanese and 17 foreign banks note that our
country does not impose any restrictions on the movement of capital or foreign
exchange. Political crisis, which took place in Lebanon a year ago, hit rates of
growth that we expect not to be similar to rates in 2010 .

has put the
loans in Lebanon and its role in
development? has launched the previous
governments, soft loans granted to the productive sectors such as industry,
tourism, technology and cares about the central bank management of these loans
with reference to the banking sector is subject to the management of qualified
and experienced .

Basel 3
is the willingness of the Lebanese banks
to start the application of the Basel Convention 3 and the
reforms? Lebanon
cope with Basel 3, to maintain the sector has the confidence to all dealers with
him. It should be noted that the percentage of solvency required in achieving
Basel 3 is currently in Lebanese banks, and we have been working for years on
grounds similar to those adopted in Basel 3 .
He knew Lebanon spasm of
political and security have impacted negatively on the economy and monetary
stability. Today, the financial sector in Lebanon towards the well-being which
in turn grows with the hope of avoiding political instability and social .

constitutes a money laundering one of the largest criminal activities in
size and most prevalent in our time, what the government and the Lebanese
banking sector to reduce this
phenomenon? was the first to Lebanon, the
issue of fighting money laundering of paramount importance and all its
institutions participated in the public sector and the private sector to work
seriously to combat money laundering. Lebanon has been in this area to work on
the development of all legal regulations, and strengthen weaknesses in the
legislation applicable, as well as to enact the necessary laws and the issuance
of implementing regulations and circulars related. All this work to be of
Lebanon in line with the global systems of modern and developing economic
environment attractive to investment, particularly the external ones .

relationship with Kuwait,
to the extent of progress and growth and
openness reached the Kuwaiti banking sector in your opinion?
Lebanon,
Kuwait, how many points of similarity brings them and the latter formed an
opportunity to strengthen the historical ties between the two countries in
political, economic and banking, where it is the State of Kuwait of the most
prominent supporters of Lebanon, whether through government deposits at the Bank
of Lebanon, or through the establishment of vital projects he has shall be
financed by the Kuwait Fund for Arab Economic Development, as well as
investments of the Kuwaiti private sector in Lebanon, which estimated at about $
4 billion. The relations between Kuwait and the Lebanese need more coordination
in order to improve their performance in the areas of economy, trade, business
and banking cooperation .
that Lebanon relies heavily on the development of
bilateral relations with Kuwait, and he does not forget the hands of the white
blowing always help whenever I need our country to them. For example,
contributes to the Kuwait Fund for Arab Economic Development, for the first time
since its establishment in the financing of projects in Lebanon, related to
culture and heritage (Museum of Beirut, Beaufort Castle, the Museum of Sidon)
was singled out Lebanon this exception enter the heritage and culture in the
list of projects funded by a grant from the Kuwaiti government amounting to $
300 million and allocated by the State of Kuwait following the July 2006 war .

How do you see the presence of the Kuwaiti banking in
Lebanon? The
presence of the Kuwaiti banking in Lebanon increases the confidence, rooted in
the State of Kuwait in the banking sector and contribute to promoting investment
in our country and we are pleased that the performance of the Kuwaiti banking on
the development of durable, which contributes to the development of economic and
social life for the Lebanese .

Lebanon will host the conference to
encourage investment in Libya,
Beirut – A – news reports said that Lebanon
was announced to host the conference in November to encourage investment in
Libya. He said Lebanese President Michel Suleiman, on the sidelines of his
presence in New York to participate in the meeting of the General Assembly of
the UN, Lebanon and Libya agreed to be held in Beirut on November 24 a special
conference to promote investment in Libya. He added, expected the Libyans us to
help, to enable them to achieve their ambitions, «In the near term are expected
to continue to protect civilians, the Libyans, and to assist the Transitional
National Assembly Libyan in maintaining security and facilitating humanitarian
access ».

800 factory closed in Lebanon during the 6 years
Beirut -
dpa A – statistics showed that the number of Lebanese factories fell between
2005 and 2011, about 550 factories. The head of the Lebanese Industrialists
Association blessing Ephraim at a news conference that «compared between 2005
and 2011 census shows that the total number of factories declined from 3673 to
3125 ie about 550 factories». He pointed out that the most affected sectors are
the garment sector, which fell to 299 of 388 factories, and furnishings from 566
to 351, and machinery plants from 240 to 202, and food of 604 to 556. He
continued: census indicates that about 800 factories were closed, while the
factory was established about 300 new large financial Ptozivat much larger than
the factories closed. He added: statistically, the number of factories in
Lebanon, which includes 8 and older workers 0.3123 factory, «according to the
statistics of exports and guide the Lebanese industrial enterprises to mid-June
2011.


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