Lebanon braces for ‘pain’ of Caesar Act amid financial meltdown – The National

Lebanon braces for ‘pain’ of Caesar Act amid financial meltdown – The National

US sanctions law targeting Syria has created uncertainty in its crisis-stricken neighbour

The US administration's latest round of sanctions against Syria has worried bankers and businessmen across the border in Lebanon, who say it could add to the small country's worst economic and financial crisis.

Implemented on June 17, the Caesar Act sanctions people who knowingly provide significant support to the Syrian government in four sectors: the military, oil and gas, aviation and construction.

Because of the close historical ties between Lebanon and Syria, the law will make business between the two countries "more problematic and expensive“ and "hurt Lebanon“, said Nasser Saidi, a former vice-governor of Lebanon's central bank.

The Caesar Act provides for secondary sanctions, which significantly widens its scope, he said.

"In other words, they are imposing sanctions on Syrian entities and business people and also on the people who deal with them,“ Mr Saidi told The National.

But bankers in Lebanon are not sure exactly how the sanctions will be applied.

"The text introduces the notion of 'significant' support to the Syrian regime. That is not clear to me,“ Riad Obegi, chairman and general manager of Banque Bemo, told The National at his office in Beirut. "It creates uncertainty, and that's not good.“

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