Lebanon’s central bank faces uncertainty without appointment of new governor

Lebanon’s central bank faces uncertainty without appointment of new governor

BEIRUT - Lebanon's central bank faces leadership uncertainty from Monday when the governor steps down with no appointed successor, risking new dysfunction in a state already hollowed out by years of political paralysis and financial collapse.

Riad Salameh leaves office after 30 years in the post, his reputation tarnished by the catastrophic financial collapse that began in 2019 and charges of corruption in France, Germany and Lebanon. He denies any wrongdoing.

The leadership crisis reflects divisions among the ruling elite that has been unable to install a president or fully empowered cabinet for over a year, while leaving the financial crisis to fester, largely unaddressed, since 2019.

The cabinet was meant to meet on Thursday to choose Salameh's successor, but it was cancelled following political disputes and there is little sign of a long-term solution on the horizon.

Under Lebanese law, that means the most senior of Salameh's deputies, Wassim Mansouri, is to replace him in the interim. But he - and the other three deputy governors - will only do so reluctantly and they are pushing for policy guarantees.

The bank's new leaders will have to grapple with a more-than $70 billion hole in the financial system, uncertain political support in a deeply fragmented