Will term of BDLs Salameh be extended?

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On the sidelines of the World Government Summit in Dubai, the Lebanese Finance Minister Youssef Al-Khalil surprised some when he told Reuters that replacing the Governor of Banque du Liban (BDL), Riyad Salameh, would be difficult and that his term might be extended despite the lack of agreement on the matter.

At a later time, Khalil's office clarified that he did not state or even suggest that Salameh's term extension would take place, contrary to what some have said, explaining that he meant that the country's conditions are complex. It also may be difficult for the political forces to agree on an alternative.

As for the extension, which the minister did not say, according to his office, he was referring to the proposal that included the term extension for first-class employees.

However, Salameh's term as BDL governor, which he has held for thirty years, will end in July. There is a lot of disagreement over his contribution to the country's financial situation; thus, are there any extension formulas?

But how can this scenario happen, especially since there is a caretaker cabinet which issues a decree appointing the governor, as happened with Salameh in May 2017 when his term was renewed for another six years, even though the position and personality of the ruler have always been associated with the President of the Republic.

Therefore, will the cabinet convene for this purpose? And will Hezbollah - which has a well-known position on Salameh - secure the quorum?

Another scenario may happen: Amending the Monetary and Credit Law, whose article 18 defines the governor's term as six years.

According to this scenario, an exceptional amendment of the law through the Parliament may occur to extend the term that began in 2017, for two years, for example.

But the parliament is currently, according to the constitution, an electorate body dedicated only to electing a president, and it cannot conduct any other matter. Moreover, there is a disagreement about holding legislative sessions under the "legislation of necessity."

However, if it is agreed to hold such a session, the presence of the absolute majority (65 deputies) is required. Furthermore, the approval of amending the law requires only an ordinary majority (half of the members in the hall).

Sources close to the Parliament Speaker did not want to comment on the position of the Minister of Finance and the circumstances that led to his speech.