Banque du Liban Governor: Banks lost $15 billion as a result of non-payment of bonds by the state

Banque du Liban Governor Riad Salameh confirmed that the government’s failure to pay back sovereign bonds is the root cause of the crisis and has caused banks to lose $15 billion.

Salameh said: “The withdrawal crisis began with the suspension of payments by the state,” stressing that “the Bank of Lebanon did not withdraw funds as a result of the financial crisis, contrary to rumors, but rather returned all dollar-denominated bank funds in addition to up to $30 billion between 2017 and to 2022”.

He stated that “The Central Bank continues to supply banks with US dollars through Circulars 185 and 161 and the banking platform.”

And the Governor of the Bank of Lebanon announced earlier this month that it was adjusting the official exchange rate from 1,500 pounds to the dollar to 15,000 pounds, indicating that “this is a step towards the unification of the numerous exchange rates in the country in accordance with the draft agreement reached by Lebanon with the International Monetary Fund last year, which set conditions for launching a $3 billion rescue plan.

Source: “Vestnik”