Secretary-General of ABL Fadi Khalaf: Lebanese banks are preparing to reactivate their work

Secretary-General of the Association of Banks in Lebanon (ABL), Fadi Khalaf, stated that with President Joseph Aoun's election and Judge Nawaf Salam's appointment as Prime Minister, Lebanon is entering a new phase filled with hope for restoring stability and economic recovery. 

He emphasized that this phase requires concerted efforts and hard work to implement necessary reforms and overcome the country's challenges.  

In the opening statement of the association's monthly report, Khalaf highlighted the importance of restoring both domestic and international confidence. He noted that the election of Aoun and the designation of Salam rekindled hope in rebuilding trust in Lebanon, both internally and externally. He stressed the need for fundamental reforms, including strengthening governance, updating legislation, and ensuring an independent judiciary.  

On the issue of deposit recovery, Khalaf underscored that the new president's inaugural address aligned with the State Council's decision to reject any measures leading to deposit cuts. He affirmed that banks are fully prepared to cooperate with the Banque du Liban (BDL) and the government to find fair solutions.  

Addressing the restructuring of the public and banking sectors, Khalaf said the current situation demands a comprehensive plan to restructure public administration, public debt, the BDL, and commercial banks. He emphasized the importance of an integrated and balanced approach that involves all relevant stakeholders.  

He also highlighted the banking sector's readiness to resume operations to support productive sectors and promote economic growth by providing fair and appropriate financing for economic projects. 

However, he stressed the necessity of enacting essential legislation to address legal loopholes that have exacerbated the current systemic crisis.  

Regarding business environment improvements, Khalaf pointed out that attracting foreign investments and strengthening relations with friendly nations are key objectives that would enhance the business climate and facilitate banking operations.  

Khalaf also called for Lebanon's removal from the Financial Action Task Force's (FATF) gray list, stressing that compliance with international anti-money laundering and counter-terrorism financing standards is a top priority. He asserted that removing Lebanon from the list would help restore confidence in the financial system and attract investments.  

On inflation control, Khalaf noted that with a stabilized Lebanese lira exchange rate, financial and monetary policies could alleviate inflationary pressures, thereby improving citizens' purchasing power and stimulating economic growth.  

Regarding cooperation with international bodies, Khalaf stressed that engaging with the global community offers an opportunity to secure the necessary financial aid and loans to support the BDL's liquidity, enhancing banks' ability to finance the economy.