Lebanon: Bank Employees Are Back to Work, Doors to Open on Friday

Arab World

October 31st, 9:13am

Beirut- Ali

Lebanon: Bank Employees Are Back to Work, Doors to Open on Friday

Coordination between banking and financial authorities have increased, with the aim of adopting procedures to alleviate the currency crisis ahead of the resumption of activities at the financial markets and institutions. In remarks to Asharq Al-Awsat, a senior banking official said that reassuring the internal or external markets would begin with the adoption of the right political track, mainly the beginning of parliamentary consultations and the nomination of the new prime minister. He also said that clear directions must be set in order to overcome uncertainty obscuring the objective vision. Just as Prime Minister Saad Hariri’s resignation led foreign investors to abandon Lebanese bonds, his reassignment or the appointment of another figure with his approval would automatically reverse the expectations. The senior banking official told Asharq Al-Awsat that the market balance would likely be restored beginning of next week, with the resumption of the financial market activity. He added that Banque du Liban (BDL), with the support of the Lebanese Banks Association, would obviously play a pivotal role in re-establishing financial stability and controlling liquidity during the process of forming a new government. The financial sector would also urge political officials to accelerate this phase in order to prevent a further decline that could lead to economic and monetary disasters. Meanwhile, bank employees were asked to return to work on Thursday to complete internal preparations and logistics before opening the doors to customers on Friday. Clearly, banks will be fully prepared to meet the potential withdrawal of deposits. Exceptional liquidity has already been provided from their reserves and from the Central Bank. These topics topped the agenda of Wednesday’s meeting between BDL Governor Riad Salameh and the head of the Association of Banks, Salim Sfeir, during which an agreement was reached to continue pumping cash through ATMs, raise the ceilings of withdrawals to a minimum of one million LBP per day, and reduce the restrictions of operations that prevent customers from withdrawing from all ATMs.

from Asharq AL-awsat https://aawsat.com/english/home/article/1969971/lebanon-bank-employees-are-back-work-doors-open-friday