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

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.

Maintained banking stability since he took office purify the Lebanese banking sector less costly and more intelligent, 29 banks taken out of 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 Lebanese banking sector 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 in the bankruptcy when he got out of the market more than 33 banks through mergers, backed by the Bank of Lebanon, soft loans of the bank merging.
He revealed the safety of the Lebanon line with Basel 3, to maintain the sector has the confidence to all dealers with him, pointing out that the capital adequacy ratio required by the Basel 3 unrealized currently in Lebanese banks, and we have been working for years on grounds similar to those adopted in the courses mentioned. The following is the text of the interview:
What about the potential risks of political crisis in Lebanon, and whether Lebanon has been stable at the monetary variables in light of the political arena?
Since the first day of Tzlma my duties at the head of governance of the Bank of Lebanon in August of 1993, made sure that he followed the policy of distancing Bank of Lebanon to engage in internal political conflicts, and this approach in the policy proved its worth, which will continue through my duties as governor of the Bank of Lebanon for the period fourth extends until 2017.
The Lebanese banking sector 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. Today, we must therefore continue to maintain Lebanon's reputation and stability of cash.

Is Lebanon in the face economic risks lead to landslides, as some analysts expect, or the opposite is true?
Have influenced events in Lebanon in the past on its financial position, but today's decline affected the financial situation of the political and economic reality, and this is in the interest of Lebanon and the Lebanese.
We have witnessed the Lebanese that we were able to build a financial and bank and we have a decrease in interest and maintained this reduction despite 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 threat of any bank 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 the formation of the 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 career and the financial stability of national criticism.

Investment Opportunities
What investment opportunities in Lebanon now, and whether investors expect an increase in the near future?
Nothing new to say that Lebanon is counting on investments, but is working to encourage involvement 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 to maintain monetary stability and the people's money and care not to lose any money deposited in Lebanon.
Today, we are seeing the dollars we have before us for the benefit of the lira, and sent strong signals localized markets, thus reassuring feeling in the direction of the financial situation and the national currency.
Performance of banks

Mayors of the Bank of Lebanon within its legal power to contribute to establishing the right climate for business development and the labor market in Lebanon, is this situation still 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 the exposure of our sector to the crisis that has rocked global financial markets, and continues to threaten the largest international financial references.

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 at the forefront of non-oil Arab countries in terms of per capita income.

Do you have achieved positive results Lebanese banks in 2011 at the operational level?
The policy pursued by the Bank of Lebanon prevented the bankruptcy announcement of any bank, 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.

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

Basel 3
What 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 development.

Money laundering is 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?
The first issue of Lebanon's anti-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 systems and the development of modern global economic environment attractive to investment, especially foreign ones.

Relationship with Kuwait
The extent to which progress and growth and opening up the banking sector reached Kuwait 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, which is Kuwait's most prominent supporters of Lebanon, whether through government deposits at the Bank of Lebanon, or through the establishment of vital projects at which it funds Kuwait Fund for Arab Economic Development, as well as the Kuwaiti private sector investments in Lebanon, 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.
Lebanon is counting heavily on the development of bilateral relations with Kuwait, and he does not forget the white hands are always blowing to help our country whenever he needs it. 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 after the war of July 2006.

How do you look to the Kuwaiti banking presence in Lebanon?
The Kuwaiti banking presence 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 (dpa) - - According to news reports announced that Lebanon will host a 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, expect us to help the Libyans, 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 in the maintenance of the Libyan security, facilitate humanitarian access».

800, closed in Lebanon during the 6 years
Beirut - 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 Source: http://wuabonline.com/WUAB/NewsDetails.aspx?Id=12309&language=en

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