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Lebanon PM will not extend central bank governor's mandate
  + stars: | 2023-07-10 | by ( ) www.reuters.com   time to read: +3 min
BEIRUT, July 10 (Reuters) - Lebanon's caretaker premier, Najib Mikati, will not extend the term of central bank Governor Riad Salameh when it ends later this month, the prime minister's office said on Monday. One of Lebanon's four vice governors told Reuters that all four were considering quitting together if no successor is named, raising the possibility of a leaderless central bank amid a deep financial crisis. Mikati's deputy, Saade Chami, told Reuters last week that such a threat was "dangerous" and that the vice governors should "assume their responsibility in case this appointment is not possible." Central bank governors are typically appointed by the president, but parliament has been unable to elect a president to follow Michel Aoun, whose term ended in late October. The central bank governor, who was once a regular at banking conferences and high-end restaurants, is now rarely seen in public except for occasional media interviews.
Persons: Najib Mikati, Riad Salameh, Salameh, Saade Chami, Michel Aoun, Nabih Berri, Berri, Mikati, Maya Gebeily, Mark Heinrich, Leslie Adler Organizations: Reuters, Thomson Locations: BEIRUT, Central
What makes electing a president so difficult, what's at stake, and who are the candidates? In the event of a vacuum, presidential powers should pass to cabinet led by Sunni Muslim Prime Minister Najib Mikati. The Maronite community is more politically fractured than others in Lebanon, giving rise to many presidential hopefuls. Anti-Hezbollah lawmaker Michel Mouawad has won the most votes in four unsuccessful presidential election sessions so far, but not enough to win. But analysts and political sources say he would face opposition, notably from the Maronite politician Gebran Bassil, President Aoun's son-in-law and a presidential hopeful himself.
Register now for FREE unlimited access to Reuters.com RegisterSpeaking on local broadcaster LBCI, Chami said the state's plan to plug a $72 billion hole in the financial system would not be able to "save all depositors." Chami said the government's total foreign currency reserves - including its gold deposits - amount to between $25 billion and $30 billion "at best." Parliament still needs to approve a banking resolution framework to address Lebanon's bloated commercial banking sector and a capital controls law. Chami said he expected that most banks would not face problems in paying back depositors or undergoing a restructuring. Register now for FREE unlimited access to Reuters.com RegisterReporting by Maya Gebeily; Editing by Andrea RicciOur Standards: The Thomson Reuters Trust Principles.
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