Finance Lebanon needs deep reforms on unstable outlook says IMF The International Monetary Fund (IMF) has welcomed new policies enacted by Lebanon’s central bank, but said deep reforms were still necessary as the crisis-stricken country’s “outlook remains difficult and unstable”. Lebanon’s nearly four-year economic meltdown has cost the local currency roughly 98 percent of its value and impoverished thousands, but authorities have been slow to […] September 17, 2023
Economy Lebanon passes 2024 budget but debate rages on taxes and ‘dollarisation’ Lebanon’s caretaker cabinet passed a draft budget for 2024 on Tuesday with a focus on raising tax revenue and a move towards collecting fees and taxes in dollars. It was the first time since 2002 that a budget was approved within the constitutionally delineated time period of 31 October, which caretaker prime minister Najib Mikati […] September 13, 2023
Banking & Finance Lebanon to ditch Sayrafa currency exchange platform Lebanon’s cabinet has approved the replacement of the controversial Sayrafa currency exchange platform with a new one run through the Bloomberg trading system. Caretaker Information Minister Ziad Makari gave no indication of a time frame for the replacement when he spoke to reporters this week, saying only that the new platform would come into effect […] September 8, 2023
Economy Economic activity in Lebanon remains sluggish Lebanon’s economic activity appears to have contracted in August following a summer business lull according to a purchasing managers’ index published on Tuesday. The PMI is a monthly report based on survey responses from businesses regarding five subdivided performance indicators including new orders, output and employment. The report, compiled by BLOMInvest Bank and the ratings […] September 7, 2023
Retail Dubai Holding weighs sale of 25% stake in retail franchisee Dubai Holding, the investment vehicle of Dubai’s ruler Sheikh Mohammed bin Rashid Al Maktoum, is weighing the sale of its minority stake in Azadea Group, which operates Inditex franchises in the Middle East including Zara, three people with knowledge of the matter told Reuters. Dubai Holding has selected JPMorgan and Rothschild & Co to advise […] September 6, 2023
Economy Lebanon’s central bank refuses to cover state deficit Lebanon’s central bank will not print money to lend the state or cover the crisis-hit economy’s projected deficit, acting central bank governor Wassim Mansouri said on Friday, calling on leaders to undertake urgent financial reforms. Mansouri told a press conference at the central bank the draft budget for 2023 included a state deficit of 24 […] August 27, 2023
Oil & Gas Lebanon to conduct seismic studies on offshore block 8 Lebanon has granted a licence to a consortium of international companies to conduct seismic studies on its offshore oil and gas block 8, caretaker energy minister Walid Fayad said. “Today is a historic day in a journey that started in 2010,” the state-owned National News Agency cited the minister as saying. “There are major hopes […] August 25, 2023
Video length: 00:56 VIDEO Oil & Gas Drilling to begin on Lebanon’s block 9 Exploratory drilling in Lebanon’s offshore oil and gas block 9 will commence on Thursday of this week, caretaker energy minister Walid Fayad has said. “On August 24 the drilling process will begin, and it will be a historic day,” the state-owned National News Agency reported, citing the minister. “After 67 days, we will know the […] August 23, 2023
Finance Lebanon reports $660m in loans from Gulf states Lebanon’s central bank said its liquid foreign assets stood at $8.57 billion as it disclosed the numbers for the first time in a push for greater transparency after the departure of its long-time governor Riad Salameh. The central bank did not provide comparison figures from earlier periods, but at the start of the financial crisis […] August 18, 2023
Economy Lebanon’s caretaker PM says economic stability at stake Lebanon’s failure to approve a string of crucial economic laws to pull the country back on to its feet threatens the country’s future economic stability, caretaker Prime Minister Najib Mikati said. A financial meltdown that started in 2019 has weakened the currency by more than 90 percent, paralysed the financial system and frozen depositors out […] August 18, 2023
Finance Lebanon freezes ex-central bank governor’s account Lebanon has frozen the bank accounts of former central bank governor Riad Salameh and four of his associates, a statement by the special investigation commission has revealed. Lebanon has also lifted banking secrecy on the accounts of all five individuals, which include Salameh, his brother Raja, his son Nady, his former assistant Marianne Hoayek and […] August 15, 2023
Banking & Finance Lebanon central bank chief denies alleged fund fraud Lebanon’s longtime central bank governor Riad Salameh defended his record on Wednesday in a televised interview just days before he is set to leave office, denying he embezzled public funds and saying his policies benefited the economy. Salameh, whose 30-year tenure as governor has been stained by a deepening financial crisis and charges at home […] July 27, 2023
Banking & Finance Lebanon proposes floating forex rate by September The vice governors of Lebanon’s central bank have proposed lifting the longtime peg on the country’s local currency and moving to a managed float by the end of September. The details were outlined in a copy of their proposal seen by Reuters on Thursday. The Lebanese pound has lost more than 98 percent of its […] July 21, 2023
Banking & Finance Lebanon to phase out Sayrafa exchange platform Lebanon’s central bank will decommission the controversial exchange platform known as Sayrafa after governor Riad Salameh’s 30-year tenure ends this month, one of the institution’s vice governors told Reuters on Monday. Salim Chahine said the bank’s leadership was talking with government and parliament policymakers, as well as the International Monetary Fund (IMF), about the need […] July 18, 2023
Analysis Energy Lebanon’s energy dilemma: power cuts and costly solar In a car park in West Beirut, a fuel tanker pumps 4,000 litres of diesel into barrels that will keep Bassem Jabir’s four illegal energy generators humming for another few days. Linked to local houses by dozens of thick cables strung across pavements and dangling from street lamps, generators like these have become the primary […] July 13, 2023
Banking & Finance Lebanon rules out extension of central bank governor’s term Lebanon’s caretaker premier, Najib Mikati, will not extend the term of central bank governor Riad Salameh when it ends later this month, the prime minister’s office said. The July 31 expiration of Salameh’s term will bring to an end a 30-year tenure stained by recent charges at home and abroad of embezzlement of Lebanese public […] July 11, 2023
Economy Lebanon’s economic crisis deepening, says IMF Lebanon’s financial crisis has been aggravated by vested interests resisting crucial reforms, the International Monetary Fund said on Thursday, warning that no action could lead the country “down an unpredictable road.” The four-year economic meltdown has cost the local currency 98 percent of its value, seen GDP contract by 40 percent, pushed inflation into triple […] June 30, 2023
Transport Carlos Ghosn: $1bn Nissan lawsuit ‘not a gimmick’ Carlos Ghosn’s $1.09 billion lawsuit against his former employer Nissan, filed on Monday in Lebanon, is “not a gimmick” and the former car boss had considered claiming for an even higher amount, his legal team in Beirut told AGBI. The lawsuit, which AGBI has seen, levies 10 criminal offences against 12 individuals and two firms […] June 22, 2023
Banking & Finance Ghosn files $1bn lawsuit against Nissan in Lebanon Carlos Ghosn said on Tuesday he will fight “to the end” in a $1 billion lawsuit the former Nissan chairman has brought against the Japanese carmaker, marking his first such challenge. Ghosn’s lawsuit, which he filed in Lebanon and a copy of which was seen by Reuters, includes allegations of defamation, slander, libel and the […] June 21, 2023
Analysis Economy Dollars make life harder in Lebanon’s cash economy At the checkouts of a busy supermarket on Souraty Street in west Beirut, waiting customers count their dollars. Since the economic crash of 2019, paying by card has fallen out of favour and, increasingly, so has the Lebanese pound. The largest national note, the LBP100,000 bill, is currently worth just $1.07 at market rates. Paying […] June 19, 2023
Economy IMF seeks urgent reforms to avert crisis in Lebanon Lebanon must take urgent action on comprehensive economic reforms to avoid “irreversible consequences” for its economy, the International Monetary Fund (IMF) said. IMF spokesperson Julie Kozack told reporters that IMF staff concluded an Article 4 consultation with Lebanese authorities on June 1 and concluded that reforms were urgently needed to arrest the “severe and deepening […] June 9, 2023
Banking & Finance Lebanon set to be grey-listed by financial crime watchdog Lebanon is likely to be placed on a “grey list” of countries under special scrutiny over unsatisfactory practices to prevent money laundering and terrorism financing, three sources familiar with the matter told Reuters. Being added to the list would be another major blow to a country in a financial tailspin since 2019 and struggling to […] May 24, 2023
