USD188 billion in bank assets while Lebanon still survives on transfers of expatriates

The governor of the Bank of Lebanon, Riad Salameh, considered the Lebanese immigrants to be a core source of finance through the remittances they send and which historically represented nearly 12- 20% of the Gross National Product. Salameh was speaking yesterday during the ‘Second Conference of Emigrant Economy’ organized by Al-Iktissad Wal-Aamal Group in cooperation with the Central Bank, the Investment Development Authority of Lebanon (IDAL) and the Federation of Lebanese Chambers. In his intervention, Al Iktissad Wal Aamal CEO, Raouf Abu Zaki, pointed out that the transfers of Lebanese expatriates fluctuate between US$ 7 to 8 million each year, representing around 16% of the GDP. Similarly, the conference sponsor, PS Nabih Berri, in his allusion to the latest US sanctions on Lebanese banks, described the “emigrant money as clean, and therefore, punishing the country, its political parties or religious sects is unfounded, and it denotes an act of disrespect of their human right to belonging and expression. He warned of continuing the existing US restrictions. For his part, Fadi Gemayel, president of the Lebanese Industrialists Association, said the private sector is strong and initiative oriented with substantial financial abilities at hand estimated at USD188 billion (local banks assets). This amount can be expended in various projects, he maintained, related to the infrastructure and investment schemes, and also to supporting productive institutions and small and medium enterprises (SMEs). In his turn, Mohamad Chukeir, president of the Chambers of Commerce, said Lebanon will see a bright period in the near future, based on its capacities and its leading role in the region, and in view of the forthcoming oil and gas ventures, as well as the ratification of the partnership agreements and reconstruction of neighboring Syria and Iraq. In conclusion, Salameh recalled the steadfastness of the Lebanese banks against all economic challenges, underlining the strong purchasing power of the Lebanese pound against European, non-oil Arab and Mediterranean currencies. He disclosed that the Bank has recently adopted a computational finance system which boosted its assets in US dollar by more than three billion dollars, resulting in additional revenues of over US$ one billion for the Central Bank and a corresponding amount for the banking sector. (As Safir, An Nahar, Al Diyar, Al Mustaqbal, Al Hayat, Al Akhbar, July 15, 2016)