Lebanon PM will not extend central bank governor’s mandate, office says

Lebanon PM will not extend central bank governor’s mandate, office says

BEIRUT - Lebanon's caretaker premier Najib Mikati will not extend the term of sitting central bank governor Riad Salameh when it ends later this month, the prime minister's office said on Monday. Salameh's term expires on July 31, bringing an end to a 30-year tenure stained by recent charges at home and abroad of embezzlement of Lebanese public funds. He denies the charges. In a statement sent to Reuters, Mikati's office said his position was based on current legislation which stipulates that the first vice governor would assume the governor's duties until a new one is appointed. "The most important thing is that no vacuum occurs at the central bank because it's the country's financial backbone," the statement said. One of Lebanon's four vice governors told Reuters they were considering quitting together if no successor is named, raising the possibility of a leaderless central bank amid a deep financial crisis. Mikati's deputy, Saade Chami, told Reuters last week that such a threat was "dangerous" and that the vice governors should "assume their responsibility in case this appointment is not possible." Efforts to find a successor to Salameh have been hamstrung by Lebanon's breakdown in governance and intensifying political tensions. Central