Lebanon needs $12-15 bn to kickstart recovery, Salami says

Central Bank Governor Riad Salameh . Salameh blames the corrupt Lebanese governments for the financial crisis .” I didn’t spend the money” he was quoted as saying . But according to the Swiss authorities he and his brother Raja laundered hundreds of millions of Dollars

Beirut – Lebanon needs to receive 12 to 15 billion dollars from its partners to kickstart its economic recovery and shore up fast-diminishing foreign currency reserves, Central Bank Governor Riad Salameh said Tuesday. 

Lebanon is grappling with an unprecedented economic crisis branded by the World Bank as one of the planet’s worst in modern times.

More than 80 percent of the population lives in poverty and the currency has lost more than 90 percent of its black market value amid political squabbling that has delayed an agreement with the International Monetary Fund.

“Our quota in the International Monetary Fund is 4 billion,” Salameh said in an AFP interview. 

“If countries add to it, we could reach 12 to 15 billion, an amount that could help start Lebanon’s recovery and restore confidence,” he said.

Lebanon defaulted on its debt for the first time last year but political leaders have continued to resist key reforms demanded by donors to unlock necessary funds.

Meanwhile, the central bank’s mandatory dollar reserves have been slashed by more than half. 

“The mandatory reserves are down to 12.5 billion dollars,” said Salameh who is widely viewed as a key culprit behind an economic crash they say is caused partially by central bank policies. 

The mandatory reserves stood at $32 billion before the start of the economic crisis in 2019.

The fast-diminishing reserves are threatening a subsidy programme that had initially covered fuel, medicine, flour and other key imports before it petered out.

The central bank can afford to finance partial subsidies on a few remaining key imports for “around six to nine months,” if no additional measures are taken to combat the depreciation of the Lebanese pound, Salameh said.

Officially pegged at 1,507 to the greenback since 1997, the Lebanese pound sold for nearly 30,000 to the dollar on the black market earlier this month in a record low.

The official fixed rate is “no longer realistic”, Salameh said, while explaining that a unified exchange rate would be unlikely in the absence of an IMF agreement and political stability. 

Lebanon last year started IMF talks that have relaunched in recent weeks during which Lebanese officials have agreed that financial sector losses amount to around $69 billion.

“Lebanon is still in the stage of crushing numbers,” Salameh said. “The Lebanese side hasn’t yet presented a plan to the IMF for discussion.”




5 responses to “Lebanon needs $12-15 bn to kickstart recovery, Salami says”

  1. Mr Salameh , no one trusts you anymore . How much of the $12 to $15 billion are you planning to steal and transfer to your Swiss and other accounts in Europe , You should be in jail when the IMF money comes and the Lebanese should bombard you with old shoes and should rename you Mr Sarameh . You and the corrupt Lebanese politician are the reason why Lebanon is in such a mess , shame on you.
    I personally think that the IMF should not give the current Lebanese politicians any money , because they will pockets it and accumulate more public debt for Lebanon that future generations have to deal with . The IMF should wait until the last politician leaves and a clean team takes over .enough is enough

  2. 18,132,000,000,000.00 Lebanese pound at least

  3. Lebanon – The croissant test at Duty Free
    After the shawarma test in Lebanon, young people from Tripoli were shocked today, according to the Lebanese media, by the price of a lone croissant at Duty Free in the fields of Beirut.
    The price was 100,000 Lebanese pounds, which is about a dollar – about four dollars.
    It may not sound like much to you, but in Lebanon it is about one-sixth of the minimum wage. That means the monthly minimum wage in Lebanon buys 6 croissants at Beirut’s duty free.
    Next time eat at home … https://t.me/abualiexpress/32427

    1. Arrived in Gaza …
      IPhone Promax 13 24ct gold plated is now available in stores in Gaza.
      Price: 11,000 NIS 3,474.23 United States Dollar 5,250,369.68 Lebanese pound
      When there is such a commodity in Gaza … there are also those who buy it …. https://t.me/abualiexpress/32428

  4. Money can steal from Gaza or Alawitostina

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