Crisis in Lebanons Central Bank: The search for alternative solutions

Crisis in Lebanons Central Bank: The search for alternative solutions

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2023-07-27 | 01:53

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Crisis in Lebanon's Central Bank: The search for alternative solutions

The "Governance Alliance," which brought together Hezbollah, the Free Patriotic Movement, and the Marada Movement, toppled the session of the caretaker government scheduled for Thursday.

Consequently, the plans for extending the term of Lebanon's Central Bank Governor, Riad Salameh, appointing a replacement, or finding a legal solution to regulate the bank's administration after the end of the governor's term, have all collapsed, with no recourse to the Monetary and Credit Law.

This article was originally published in, translated from the Lebanese newspaper Al-Akhbar.

The news conveyed to Parliament Speaker Nabih Berri and Caretaker Prime Minister Najib Mikati Wednesday prompted them to search for an alternative solution to ensure that none of the four Central Bank deputies resign.

Contacts were made, resulting in an initial agreement for a 'necessity legislation session' in the parliament, allowing to lend Banque du Liban (BDL) approximately 800 million dollars to be disbursed over a maximum of four months, secured from the reserves held by BDL.

This is the only remaining option for the ruling authorities to convince the Central Bank deputies to cooperate.

However, Mikati met on Wednesday with the four BDL deputies and expressed his concerns about the