“Affari come il solito” per le banche mentre gli scontri armati scuotono il Libano
● Il governatore della Banca centrale libanese: nessun trasferimento anormale di denaro dal Libano, le banche, sostenute da circa $14 Md in riserve estere, funzionano normalmente nonostante siano in atto gli scontri più violenti dalla guerra civile del 1975-90.
● Oltre il 77% dei depositi bancari sono in $.
‘Business as usual’ for banks as fighting shakes Lebanon
Bankers report no mass withdrawals or transfers
BEIRUT: Backed by nearly $14 billion in foreign currency reserves, Lebanese banks have again weathered the immediate negative effects of the fighting in Lebanon. Central Bank Governor Riad Salameh told Reuters that no abnormal currency transfers out of Lebanon have taken place and the banking sector is functioning normally despite the worst internal strife since the 1975-1990 Civil War.
Salameh added that the Lebanese pound and interest rates had remained stable throughout the violence, which has killed at least 59 people.
All bankers interviewed by The Daily Star on Monday assured that there was no panic in the market and no mass withdrawal of deposits.
"Most of our branches in Beirut, which was scene of two days of clashes, opened their doors in the morning and closed in the afternoon," said the deputy general manager of Bank of Beirut and the Arab Countries, Saad Andary, adding that most of the bank’s employees reported to work.
"It is business as usual. We are still receiving customers and doing all the transactions," Andary said.
Echoing similar views, Joe Sarrouh, the adviser to the chairman of Fransabank, said that demand for the dollar was very normal: "More than 77 percent of the bank deposits are in US currency and this explains why the Lebanese are not rushing to buy dollars."
He added there are sufficient dollar notes in the market, although it is advised not to withdraw large amounts of dollars.
"Banks can provide a customer up to $5,000 or a little more in cash. But any request for bigger withdrawals may have to be reviewed by the banks," Sarrouh said.
Bankers noted that the closure of Beirut’s airport blocked the only route to receive dollar notes by planes.
"We can do any transfer from one country to another and fortunately we did not receive many requests to transfer funds outside Lebanon," another banker said.
Salameh said that banks have seen some demand to exchange Lebanese pounds to dollars but in a very moderate and expected volume.
"The Central Bank has stated clearly that the Lebanese pound will remain stable. We have the means to do it. Interest rates will also remain at present levels," he added
Salameh said that although the reaction in the exchange market had been "moderate," it was largely stable because negative expectations had already been factored in for a country paralyzed by political crisis for 18 months.
"Overall, we can say the Central Bank will be providing the necessary liquidity for the servicing of the debt, for the principal of the debt and also for the banks if needed," he said.
But Salameh said the government would wait for a "better environment" to refinance $870 million in debt which matures in August.
However, Makram Sader, the secretary general of the Association of Banks in Lebanon, told The Daily Star that it was wrong to focus only on the monetary situation.
"Banks are doing very well despite the tense political and security situation. But we should not ignore the economic and social factors in the country," Sader said.
He added that the economic slowdown in Lebanon started before the fighting erupted.
"The closure of the airport and the main routes leading to Syria are strangling the economy, which is already reeling under recession," Sader said.
He also warned that if the crisis is not solved soon, souring business positions will prompt depositors to withdraw their funds. – With agencies