REPORT: Lebanon's finances can cope with PM resignation - finance minister

Lebanon and its financial institutions can cope with the impact of Prime Minister Saad Hariri's surprise resignation , Finance Minister Ali Hassan Khalil said on Monday.

In a televised statement after a meeting on the economy chaired by President Michel Aoun, Khalil said the state is able to finance itself.

Hariri left Lebanon for Saudi Arabia on Friday and resigned on Saturday in a televised statement from Riyadh, saying he believed there was an assassination plot against him and accusing Iran, Saudi Arabia's arch-rival, and its Lebanese ally Hezbollah of sowing strife in the Arab world.   

His resignation stunned Beirut's political establishment, brought down the coalition government and sparked a new political crisis. It has thrust Lebanon into the front line of the regional rivalry between Sunni Muslim Saudi Arabia and Shi'ite Muslim Iran that has also buffeted Syria, Iraq, Yemen and Bahrain.

Lebanon's U.S. dollar-denominated bonds fell across the curve and credit default swaps jumped on Monday but Khalil said there was no cause for concern.

The central bank sought to calm fears that the political turmoil would hit Lebanon's already fragile economy. Central Bank Governor Riad Salameh told local television that the monetary situation was stable on Monday and markets were normal.

 

REUTERS