The Acting Governor of the Central Bank of Lebanon, Wassim Mansouri, stated during a meeting with a delegation from the Journalists Syndicate that regarding the situation of banks and the "haircut", the Central Bank has currently issued Circular 158 which explains the process for deposit withdrawals. He emphasized that the circular, like all others, is not inflexible and acknowledged criticisms from various parties towards it.
Mansouri stressed that "the central bank cannot replace the entire state in solving a crisis as significant as the financial one Lebanon is experiencing." He noted that the World Bank stated that the crisis Lebanon is facing is unprecedented in 150 years. He questioned whether such a crisis warrants all Lebanese politicians to unite and set aside their differences for the sake of Lebanon and its people, reiterating that the delay in solving internal issues led to the current predicament.
He reiterated, "starting from August 1, 2023, the reserves of the Central Bank cannot be tampered with." He concluded that the reserves currently available are insufficient to resolve the issues of depositors, but could serve as a foundation for solutions, especially if supplemented by the banks' own reserves through proper restructuring. Mansouri advocated for a roadmap to recovery, suggesting that Lebanon's economy could bounce back quickly if approached correctly.
He continued by highlighting the importance of a robust banking sector in achieving a healthy economy, mentioning that no recovery can take place without redeveloping trust between banks and depositors. He called for clear laws to determine the fate of the banking sector, particularly in light of restructuring plans that are pending in the government.
Regarding the depositors' crisis, he remarked that the central bank should not be expected to find solutions, as this falls outside its jurisdiction. He expressed his willingness to work with parliament and the government for solutions while emphasizing the need for legal structures to address the serious financial crises faced.
Mansouri addressed the report from "Alvarez & Marsal", clarifying his commitment to addressing corruption and irregularities, stating that he would send all suspects to the judiciary while affirming his responsibility to provide answers to depositors.
Responding to questions about his political affiliations and accountability, he affirmed that Lebanon is his primary concern and recognized shared responsibility among all Lebanese for the current situation. He stated that the central bank's role is to provide stability and guidance and that it does not seek to take over government responsibilities.
Mansouri concluded by expressing hope for the central bank to be a solid foundation for Lebanon's recovery, reiterating his commitment to not providing financing to the state while managing depositors' funds responsibly. He asserted that the central bank must maintain its role in stabilizing the financial framework without overstepping its function.
