Société Générale S.A. (France) is Not Divesting its Participation in SGBL
An al-Akhbar newspaper article titled "the French are withdrawing from Société Générale" contains "totally inaccurate and misleading information thus exposing the newspaper, the author of the article and the editor-in-chief to criminal legal actions," SGBL said in a press release.
"The accounting procedure applied by 'Société Générale (France)' towards constituting a provision regarding its equity participation in the share capital of 'Société Générale de Banque au Liban S.A.L.' consists of a standard procedure which is undertaken in case of a credit rating downgrade of the country where the local bank conducts its business, in accordance with the IFRS international accounting standards. Therefore, and contrary to the false information contained in this article, the aforesaid accounting procedure does not in any way mean that 'Société Générale (France)' is divesting its interest in 'Société Générale de Banque au Liban S.A.L.' and is absolutely not related to the latter’s financial situation," the press release said.
"'Société Générale de Banque au Liban S.A.L.', which is currently finalizing the increase of its common equity tier one (CET 1) in the amount of USD 283 million through cash contributions in United States Dollars (pursuant to the resolutions passed by the Board of Directors and the General Assembly held on 23 January 2020 to this effect) in accordance with the Intermediary Circular No. 532 issued by the Central Bank of Lebanon on 4 November 2019, abides by the solvency and liquidity ratios required by the Central Bank of Lebanon and the Basel Accords," SGBL added.
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