Beirut: Central Bank Governor, Karim Souaid, visited the Maronite League at the invitation of its Executive Council and Economic Committee to discuss Lebanon's monetary crisis and the path to recovery.
According to National News Agency - Lebanon, the visit focused on the Central Bank's role in helping Lebanon navigate its monetary crisis, restore the national currency, reform the banking sector, and recover depositors' funds. Souaid expressed gratitude to the Maronite League, its Executive Council, and its Economic Committee for the invitation and commended the League's President, Ambassador Karam, for aptly describing the current situation.
Souaid highlighted the importance of the Central Bank's independence from political authority, private sector interests, and public interest to ensure effective collaboration with state institutions. He stressed that preserving this independence is crucial as Lebanon undertakes the reconstruction and restructuring of its economy and financial systems. Collaboration with governmental authorities is essential for the success of the country's recovery efforts.
Addressing the systemic nature of Lebanon's crisis, Souaid pointed out that it stems from years of accumulated public debt, excessive bank investments in sovereign debt, and the Central Bank's lax regulatory enforcement. He advocated for reducing the burden on the Central Bank's budget and proposed a phased plan to return depositors' funds within a reasonable timeframe.
Emphasizing shared responsibility, Souaid concluded that the Lebanese state, the Central Bank, and commercial banks must collectively bear the responsibility for the ongoing crisis and work towards a sustainable solution.