Central Bank Governor Riad Salameh: the separation between politics and the economy strengthens the central site

[DRV1804]

* 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 ».

http://wuabonline.com/WUAB/NewsDetails.aspx?Id=12309&language=en

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Central Bank of Lebanon, not Central Bank of Iraq moving to Off Topics