Salameh Rules Out 'Collapse', Says No Bank Will Go Bankrupt

W460

Central Bank Governor Riad Salameh on Thursday ruled out an imminent financial collapse in the country as he reassured that no bank will go bankrupt.

“There is a crisis and difficulties, but not a collapse,” Salameh said in an interview with Lebanon’s MTV.

“Not a single bank will go bankrupt and banks facing difficulties will be merged,” he added.

Noting that liquidity in the country has declined due to “the pressure created by depositors,” Salameh reassured that Lebanese banks enjoy solvency.

“There won't be a haircut,” the Governor answered in response to a question.

“The central bank does not have the jurisdiction to carry out a haircut; this needs a law,” he reminded.

He added: “Banks must be allowed to ‘breathe’ and we have devised a plan under which depositors' money will be preserved.”

“I want to fix things and reassure the Lebanese about their monetary situation,” Salameh went on to say.

Pointing out that it is his responsibility to “preserve the current structure” and the “continuity of the Lebanese state,” Salameh noted that the central bank had financed the state “on the hope that there would be reforms.”

He also blamed the financial and economic woes on the country’s presidential vacuums, the delay in the formation of its governments and the failure to reform its electricity sector.

Asked about the latest reports about the alleged transfer abroad of huge sums of money by a number of politicians, Salameh said: "We'll send teams from the central bank's Special Investigations Commission to the banks to explore the outcome of investigations into the transfers and we will then send the result to the state prosecutor so that he takes the necessary measures."

Salameh also ruled out a "revolution of the hungry," but noted that poverty is expected to increase, urging measures.

Timeline
  • 09 January 2020, 21:39

    Salameh: Liquidity has declined due to the pressure created by depositors but banks enjoy solvency.

  • 09 January 2020, 21:36

    Salameh: The central bank does not have the jurisdiction to carry out a haircut; this needs a law.

  • 09 January 2020, 21:35

    Salameh: There won't be a haircut.

  • 09 January 2020, 21:35

    Salameh: Banks must be allowed to "breathe."

  • 09 January 2020, 21:31

    Salameh: We have devised a plan under which the depositors' money will be preserved.

  • 09 January 2020, 21:31

    Salameh: Not a single bank will go bankrupt and banks facing difficulties will be merged.

  • 09 January 2020, 21:27

    Salameh: There is a crisis and difficulties, but not a collapse.

  • 09 January 2020, 21:25

    Salameh: The economy turned into a "cash economy" after October 17.

  • 09 January 2020, 21:25

    Salameh: The political and geopolitical situations deteriorated as of August 2019.

  • 09 January 2020, 21:21

    Salameh: I want to fix things and reassure the Lebanese about their monetary situation.

  • 09 January 2020, 21:20

    Salameh: It is my responsibility to preserve the current structure and the continuity of the Lebanese state.

  • 09 January 2020, 21:17

    Salameh has decried the presidential vacuums, the delay in the formation of governments and the failure to reform EDL.

  • 09 January 2020, 21:15

    Riad Salameh to MTV: We financed the state on the hope that there would be reforms.

SourceNaharnet
Comments 12
Thumb s.o.s 09 January 2020, 21:26

The best BDL director ever! Lmao

A crook responsible for the people impoverishment... and enriching the criminal ruling class thru the banks they own.

Notice how they never disclosed the names of the politicians who transferred their billions abroad two weeks ago despite the ABL policy. Skunks.

Thumb warrior 09 January 2020, 21:50

Killon ya3ni killon
w'blablablablablablabla wa7ad minon

Thumb s.o.s 10 January 2020, 00:07

He’s the dirtiest one of them.... I told him water isn’t just for drinking! :)

Thumb canadianleb 09 January 2020, 23:11

If I recall you were going to investigate what happened to the billions of dollars that vanished. So no mention of this in your speech how come?

Thumb gebran_sons 09 January 2020, 23:48

It is incredible that not one economist or financial expert has explained to the Lebanese people why Lebanon that had 6% GNP growth after Cedar Revolution had to pay after Hizbollah 2006 War exorbitant interest rates on its debts. Most of our national debt and deficit can be traced to interest payment and electricity unpaid bills. Hizbollah's cost to Lebanon is in the hundreds of billions and no financial expert has the guts to say it. Shame on you. Shame on Marcel Khalife and his guests. Thanks God we still have courageous people like Moutran Aoude.

Thumb s.o.s 10 January 2020, 00:28

I removed all these corrupt tv channels years ago. The Telly is only for Netflix.

Watching them = giving them money...

Missing bigjohn 10 January 2020, 00:43

No financial expert would say that lie, but your zionist friends will. I know you miss the dead Antwan Lahd and miss coming to Lebanon. This what happens to collaborators. Hey, if you were a collaborator under South African Apartheid rule, you would have been NECKLACED. Is that better than swallowing Kosher food?

Thumb lebnanfirst 10 January 2020, 03:05

Anything is better than reading the writings of an era with a wooden ideology and soon to be history. If you are living here we suggest you leave to a place that more accomodoting to your racist and religiously divisive philosophy.

We are looking for patriots who use their grey matter to uplift people and help bring freedom and happiness to our country. Iqhat.

Missing cedars 10 January 2020, 04:47

The current regime destroyed the country. That's a fact.
That current regime ruled by hizbollah never paid a dime to any government institution under the mukawme divine cause. The Shia will never ever play a normal Lebanese citizen but they treat themselves as first class and must not be obligated to pay for water, electricity or any government tax.
The current regime uses the government manholes to run their own network, in other words mini state eating from the state but we question everyone why the state is falling.

Thumb cedar 10 January 2020, 07:11

No bank should be controlled fully or partly, by any political figure or political party. There should be a variety of private and public banks in Lebanon with strong regulations backing them up so that the public can benefit from a strong banking sector and economy. There should not be more than 6 main banks.

Thumb thepatriot 10 January 2020, 11:15

Salameh has been feeding us with lies and BS for the past 6 months...

Thumb libanaisresilient 10 January 2020, 16:59

Exactly.