New beginnings? BDL's Mansouri Saudi visit and Lebanon's recovery path

Lebanon Economy
2023-08-19 | 00:30
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New beginnings? BDL's Mansouri Saudi visit and Lebanon's recovery path
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6min
New beginnings? BDL's Mansouri Saudi visit and Lebanon's recovery path

Unlike previous times, the warning of Caretaker Prime Minister Najib Mikati will have an effect. The man who left the session of the parliament, which was obstructed from convening due to a lack of quorum, headed to the Speaker of the Parliament, Nabih Berri, complaining about the state of his government. 

This article was originally published in and translated from Lebanese newspaper Nidaa al-Watan.

The latter's response was, "Be patient." However, Mikati might not be patient for much longer, as those around him speak of a state of anger and despair that has overtaken him, prompting him to openly admit his intention to cease the caretaker role and remain an observer, "much like the majority of politicians who continue to engage in political intrigue despite the ongoing collapse." 

Mikati aims to achieve some necessary reforms and to foster cooperation between the government and the parliament rather than placing the responsibility for delays in accomplishments solely on the government.

The call for reforms is the prevailing sentiment of Banque du Liban (BDL) acting Governor, Wassim Mansouri, who desires a bargaining chip to communicate with the international community for assistance. Mansouri's situation is no better than Mikati's, even though the doors have been opened to receive him.

It was noteworthy to announce Mansouri's visit to Saudi Arabia in early September. 

The kingdom, which had closed its doors and not extended invitations to any officials in the financial and political sectors, is preparing to welcome the acting governor of the Central Bank of Lebanon. They are preparing an agenda that includes economic discussions. 

This prompts the question: Is Saudi Arabia about to reopen its doors for economic assistance to Lebanon as a show of support for the new governor and his steps that have received both internal and international endorsement, foremost of which is the adoption of transparency principles in dealing with and stopping wasteful practices?

Since the end of President Michel Aoun's term and the paralysis surrounding the presidential election process, Saudi Arabia has remained neutral. It distances itself from supporting any presidential candidate and insists on electing a new president and implementing economic reforms, which it sees as a path back to Lebanon.

In his statements and during the meetings held by the Saudi Ambassador, Walid Bukhari, the latest being his reception of Mansouri, Bukhari has consistently stressed the necessity of achieving the required reforms as a solution. 

However, these reforms face numerous obstacles, the most significant being the dispute over the role of the parliament in the absence of a president and the division between those who support its legislative role until a president is elected and those who reject any parliamentary activity as long as it's convened for presidential elections.

The new governor has stepped in to urge the government and the parliament to enact these reforms, even if gradually, to enable him to push for assistance. He has gone so far as to promise politicians that he's ready to be present in the parliament to aid in discussing and passing the reforms.

The groundwork for the anticipated visit was laid through Bukhari's reception of Mansouri. Discussions touched on the possibility of Saudi Arabia supporting security forces in financial matters, similar to the aid provided by other countries like Qatar to military forces. 

This is the same request that Mansouri will carry with him during his visit, in addition to discussing financial matters of mutual interest. Will Saudi Arabia be willing to cooperate, or will it stand firm in its requirement for necessary reforms and electing a president from outside the corrupt class?

The Saudi invitation to Mansouri holds multiple implications. It represents a Saudi acknowledgment of Mansouri's authority and a reopening of engagement with Lebanese institutions. 

Saudi Arabia might be seeking Mansouri's insights into the fate of the banks, the future of the Central Bank of Lebanon, and the issue of bank mergers, especially given that many Lebanese banks have Saudi capital involved. 

It could also be part of an effort to engage with the new Shiite elites. Despite being appointed through political quotas, the acting governor holds independent authority and decisions, including rejecting state financing through the previous method.

Those close to Mansouri say that he has broken free from the policies of the former governor. He intends to hold a press conference soon to openly discuss the steps he has taken since assuming responsibility. 

It can be said that Saudi Arabia, by receiving him, has turned the page on Riad Salameh's era and handed authority to Mansouri. While the visit, even if merely a "meet-and-greet," could herald a new phase, during which the kingdom intends to solidify its presence in the economy and politics.
 

Lebanon News

Lebanon Economy

Press Highlights

Lebanon

Banque du Liban

Governor

Wassim Mansouri

Saudi Arabia

Visit

Walid Bukhari

Reforms

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