Banks from 4 Arab countries seek to invest in Lebanon banks

Banks from four Arab countries are interested in investing in Lebanon’s struggling banking sector, according to an Associated Press report.

Lebanon is facing the worst economic crisis in its short and turbulent history, which has exacerbated poverty and inflation and paralysed the public sector and infrastructure.

Much of the troubles have been blamed on the mismanagement of funds in particular by government officials and the former head of the central bank, Riad Salameh.

There have been calls for Lebanon’s allies to invest in the country’s economy to help boost and revitalise it.

Caretaker Economy Minister Amin Salam and Lebanese and regional banking officials called on their Arab counterparts to invest in the crisis-hit country and help revitalise its battered economy.

The Secretary General of the Union of Arab Banks, Wissam Fattouh, told AP that discussions had been held about “the possibilities of owning and possessing some Lebanese banks that have the intention to sell.” This, he added, would be a good time to buy as banking licences will increase in value once stability returns to the local market.

READ: Remembrance of Beirut’s deadly blast overshadowed by inaction

Lebanon is in an economic quagmire and looking for immediate financial support. The country is going through one of the worst financial crises seen globally since the mid-nineteenth century and the Lebanese lira has been devalued. Account holders are now no longer able to access their money as banks lack the funds to pay out. Depositors desperate for money have since been withdrawing their savings at exchange rates far lower than the market rate.

The country has been without a president since October and Salameh stepped down on Monday.

Salameh faces charges of money laundering and fraud in Lebanon and six European countries including Switzerland and France. In March 2022, authorities in France, Germany, and Luxembourg seized assets worth €120 million ($130 million) related to Salameh as part of a co-ordinated operation.