Lebanon bank deposits up 4% on year

Lebanon Central Bank Governor Riad Salameh expects economic growth in 2018 to be 2 percent. (AFP)
Updated 15 November 2018
0

Lebanon bank deposits up 4% on year

BEIRUT: Bank deposits in Lebanon have risen by 4 percent on the year, Central Bank Governor Riad Salameh said on Thursday, and he maintained his economic growth outlook for 2018 at 2 percent.

In July Salameh had said he expected bank deposits to grow by more than 5 percent in 2018.

In October the World Bank and the International Monetary Fund (IMF) halved their growth outlook to one percent for Lebanon, where public debt is about 150 percent of gross domestic product.

“Lebanese banks have succeeded in maintaining foreign exchange inflows into their sector supported by (the central bank),” Salmeh said in a televised speech at a Beirut economic conference.

With growth low and traditional sources of foreign exchange — tourism, real estate and foreign investment — undermined by years of regional tension, Lebanon increasingly relies on dollars expatriate Lebanese deposit in local banks.

The banks buy government debt, which finances the country’s eye-watering public debt and twin deficits.

The central bank also brings in dollars through complex financial operations with local banks to boost foreign currency reserves needed to defend the Lebanese pound’s peg to the dollar.

However, deposits have been growing at a slower rate since war broke out in neighboring Syria in 2011, and deposit growth rates are closely watched.


Iran must stop supporting militias for peace offer to be taken seriously: Expert 

Updated 26 May 2019
0

Iran must stop supporting militias for peace offer to be taken seriously: Expert 

  • Iran has for long pursued a policy of outsourcing its meddling to external militias
  • Among these are the Hezbollah in Lebanon and the Houthis in Yemen

JEDDAH: Iran needs to dismantle its proxies and end its interventions in Arab affairs before seeking to normalize relations with its Gulf neighbors, a political expert told Arab News on Sunday.

“The Gulf countries have been calling for normal relations with their neighbors for years, but their calls have fallen on deaf ears on the Iranian side,” Hamdan Al-Shehri, a political analyst and international relations scholar, said.

Accusing Tehran of “playing games,” Al-Shehri described Iranian Foreign Minister Mohammad Javad Zarif’s suggestion that Iran wanted to improve relations with its Gulf neighbors as worthless “as long as it continues meddling in the affairs of other countries, and fails to halt its evil militias from sabotaging and destabilizing regional security.”

Iran has for long pursued a policy of outsourcing its meddling to external militias, which indirectly supports, such as Hezbollah in Lebanon and the Houthis in Yemen. 

Zarif, who is on a two-day visit to Iraq, told a joint news conference in Baghdad with his Iraqi counterpart Mohammed Al-Hakim that Iran wants to build balanced relations with its Gulf Arab neighbors and had proposed signing a non-aggression pact with them.

However, Al-Shehri said that Tehran needs to address three key issues — its nuclear program; its terrorist militias, which have been spreading chaos in the Gulf region and beyond; and its ballistic missile program — before making any such proposals.

“The question is, would Iran be ready to give up all three files? If they want their neighbors to accept them and normalize relations with them, they have to be honest and stop playing games,” he said.

Al-Shehri described Zarif’s regional tour as an attempt to rally support and send a false message that Iran has friends and allies who would stand by them in their crisis with the US.

“Where were these countries when Iran’s terrorist proxies in Yemen, the Houthi militias, launched missiles and drones attacking the holiest Islamic site in Makkah and other Saudi facilities?” Al-Shehri asked.

Zarif said Iran will defend itself against any military or economic aggression, calling on European states to do more to preserve a nuclear agreement his country signed.

“We will defend (ourselves) against any war efforts, whether it be an economic war or a military one, and we will face these efforts with strength,” he said.

Strains have increased between Iran and the US following this month’s sabotage attack on oil tankers in the Gulf. Washington and other regional allies have concluded that Iran is most likely behind the attacks. 

Tehran has distanced itself from the bombings, but the US has sent an aircraft carrier and extra 1,500 troops to the Gulf, sparking concerns over the risk of conflict in the volatile region.