Lebanon's Central Bank Governor can subsidize basic commodities for two more months
I am carrying out my duty in serving the Lebanese, and the accusations leveled against me are incorrect; I am not corrupt, I am independent and not partisan," said Lebanon's Central Bank Governor Riad Salameh on Tuesday night during an interview with Al Hadath.
The central bank can continue subsidizing essential commodities, namely fuel, medicine, and flour, for only two months, he added.
For all the latest headlines follow our Google News channel online or via the app.
Salameh responded to corruption accusations saying that according to the law, the central bank finances the country if it lacks financing and that the central bank is not responsible for how the governments used those finances.
Salameh clarified that in the last 12 months, $30 billion were withdrawn from deposits in Lebanese banks.
Salameh said the bank would commit to handing over Lebanese government accounts as part of a forensic audit, but that handing over domestic banks accounts would require a change in legislation. He said the central bank would seek to reorganize and sell Lebanese banks that fail to increase their capital by February.
He explained that the Central Bank would acquire shares of banks that are not committed to raising the capital.
He hoped that legislators would work with the bank on developing a law that would approve a new policy related to the exchange rate of the Lebanese Lira, relying on market elements to prevent speculation.
Regarding forensic auditing, Salameh said: "We are with the audit, and we have handed over our accounts, and we will commit to handing over the state accounts to the Ministry of Finance in preparation for the forensic audit."
He indicated that the talk about US sanctions against the Central Bank is imprecise. The bank has done everything necessary to remain involved in financial globalization, including abiding by all US regulations.
Read more:
US dispatching envoy to Lebanon, Israel in bid to revive border talks after deadlock
Lebanon’s economy has plunged into a ‘deliberate depression’: World Bank
France will arrange aid conference for Lebanon by video in December