Pursued by the courts in France and Germany for embezzlement and illicit enrichment, the governor of the Banque du Liban Riad Salamé leaves his post on Monday July 31 without a successor having been appointed by the government. A power vacuum at the head of the institution raises serious concerns as the country heads into its fifth year of economic crisis.
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With our correspondent in Beirut, Paul Khalifeh
THE deep differences between the Lebanese political forces prevented the extension, under various pretexts, of the mandate of Riad Salaméas is the appointment of a successor, who is traditionally of the Maronite faith.
The departure of the head of the Central Bank raises concerns about the financial stability of Lebanon, hit by an unprecedented crisis for nearly four years.
The Currency and Credit Code stipulates that in the event of a vacancy in the head of the central bankthe first of the four vice-governors would replace him.
But Wassim Mansouri, a Shiite close to the Speaker of Parliament Nabih Berry, has threatened to resign with his three colleagues if a series of measures and reforms are not passed by the Chamber: the vice-governors demand to be covered so as not to not take responsibility for a possible total financial collapse.
Despite pressure, Wassim Mansouri and his colleagues were unsuccessful.
Collective resignation is now excluded. And even if some of the four vice-governors decide to leave their posts, they will be responsible for running the Central Bank in the name of continuity of public service.
All the scenarios raise fears of a dysfunction of the main financial institution, which would lead to a further depreciation of the Lebanese pound. It has already lost 98% of its value.
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