Members of the Lebanese Central Bank's governing body persisted in their demand for official legal cover during their meeting with Caretaker Prime Minister Najib Mikati yesterday, seeking approval to continue funding the state at a rate of at least $200 million per month (covering public sector salaries, medication subsidies, and other general expenses). Mikati's attempts to divert the focus were futile, as his evasive responses failed to convince the Central Bank's deputies, who insisted on finding a solution within 48 hours, according to a knowledgeable source. This article was originally published in, translated from Lebanese newspaper Nidaa al-Watan.
Mikati pledged to consult with Parliament Speaker Nabih Berri and seek legal advice to determine if the government could request a $1.2 billion loan from the Central Bank for six months, with the possibility of renewal. Sources from the meeting further confirmed that the Central Bank Governor Deputies also insisted on the approval of legislation related to "capital controls," the restructuring of the banking sector, addressing losses and the fate of deposits—proposed laws that lie within the jurisdiction of the Parliament and cannot be solely placed on the government's shoulders. They also emphasized the need to increase state revenues from public utilities and "maritime properties," among others, where Caretaker Minister of Public Works Ali Hammieh has failed to take action, citing various excuses such as the issue falling outside the purview of his ministry. The sources stressed that these reforms are essential for launching the new platform that the Central Bank is pursuing to stem the losses accumulated monthly in the Central Bank's budget. Regarding the ongoing legal suits against them, the Central Bank Governor Deputies expressed concern that they could face further suits in the future if the Central Bank continues to finance the state through the remaining mandatory employment reserved for banks and their depositors. They argued that being members of the Central Council since their appointment, they are responsible for endorsing some of the practices invented by BFL Governor Riyad Salameh that they previously objected to. The sources expressed surprise at how former Finance Ministers Ghazi Wazni and Youssef Khalil claim that they did not receive any objection letters from the Central Bank's deputies during the days of "hysterical" subsidies, as there were at least seven letters, with registered numbers indicating they reached Wazni and Khalil. The sources questioned how they could disavow their responsibility and deny the truth. They urged them to come forward publicly to respond to the deputies' allegations. One of the Central Bank's deputies told "Nidaa Al-Watan": "We are ready to present all the facts in a press conference attended by local and international media. Each party should take responsibility, and we will not evade any responsibility that falls on us if we are found guilty." Another deputy of the Central Bank told "Nidaa Al-Watan": "They are demonizing us as if we caused a $72 billion hole in the Central Bank, which is the outcome of 30 years of practices to which Salameh and the 'system' agreed on using familiar methods." He added: "It is our right to be apprehensive, and it is not shameful to seek legal protection," admitting to the mistake of not remaining silent until August 1 and strictly applying the Monetary and Credit Act and freeing the exchange rate, as requested by the International Monetary Fund. However, he added: "We should have done so even if we were exposed to harm, but political and sectarian leadership of one of us prevented it, leading to calls for our resignation." Regarding appointing a judicial guard for the Central Bank, one of the lawyers mentioned in the leaks clarified that he "did not agree to the offer." He added that Free Patriotic Movement leader Gebran Bassil proposed Antoine Choucair for this role. Hezbollah supports this nomination to court his favor during this period as an endorsement for the party's choices in the presidential election. Hezbollah categorically rejected any initiative by Berri to appoint a genuine governor, fearing it would upset Bassil.