University of nicosia, University in Nicosia, Cyprus

By John SolomouNicosia [Cyprus] May 1 : Riad Salameh, the long-serving Governor of the Central Bank of Lebanon (Banque du Liban - BDL) who was once internationally seen as the guardian of Lebanon's financial stability, has fallen from grace and he is now been accused by the relevant authorities of Lebanon, France, Belgium Germany, Switzerland, Luxembourg and Lichtenstein of financial crimes and of laundering more than USD 330 million.There are also suspicions that he and his associates used embezzled funds to buy luxurious property in Europe.This is taking place as Lebanon is facing the worst financial and economic crisis in its history, which ranks amongst the worst economic crises globally since the mid-nineteenth century, while the value of the Lebanese lira has fallen at a times low, surpassing LL 100,000 to the dollar.As if this was not enough, Lebanon has been affected by the economic impact of the covid-19 outbreak, the massive and deadly explosion at Beirut Port in August 2020, triple-digit inflation, electricity supplied only two hours a day and prolonged government paralysis. As a result, it is estimated that three-quarters of Lebanese people now find themselves below the poverty line.Last February, the official Lebanese News Agency reported that Riad Salameh, who has served as Governor of Lebanon's Central Bank since 1993, has been charged with money laundering, embezzlement of about US$ 330 million, tax offences and illicit enrichment.Riad's brother Raja and Marianne Hoayek, a BDL adviser, were also charged by Public Prosecutor Raja Hamoush, following an investigation that lasted for more than 18 months into Riad Salameh's role in the collapse of the economy of Lebanon, which in the not-so-distant was one of the prosperous countries in the Middle East but now can be described as a "failed state".The Salameh brothers have consistently denied any wrongdoing. Riad Salameh has all along been saying that he created his wealth from his previous job as an investment banker at Merrill Lynch and from wisely investing his money.In a recent report SonntagsZeitung, a Swiss newspaper, said that Riad and Raja were involved in the transfer of US$330 million to a number of Swiss accounts through Forry Associates Ltd, a company owned by Raja, and then used in buying property in several European countries.Last week, a judicial team from France, Germany and Luxembourg visited Lebanon for a third time, trying to investigate the financial crimes allegedly committed by BDL Governor Riad Salameh and his brother Raja, as well as Riad's aide Marianne Hoayek.Although Raja Salameh was summoned for questioning, claiming illness, he did not appear before the judicial team, which managed only to question for many hours Marianne Hoayek. Riad Salameh had been interrogated for eight hours last March. All along he has insisted that he was made a scapegoat for Lebanon's meltdown.According to Associated Press, this week the investigators from the three European countries plan to question caretaker Finance Minister Youssef Khalil, who was a close associate of Salameh.The French investigators also questioned Marwan Kheireddine, the Chairman of Lebanon's AM Bank, in connection with money laundering and suspicions that Riad Salameh was using commercial banks to siphon public money out of the country. They believe that Salameh "used fake records of bank accounts at AM Bank" supplied to him by Kheireddine to justify the ownership of his property.Last Tuesday, it was announced that the European judicial team and the Lebanese Prosecutors will exchange information on the data and evidence they have collected so far in their respective investigations.Facing a devastating financial crisis since 2019, the Central Bank of Lebanon imposed strict restrictions on withdrawing US dollars and Lebanese pounds, sparking numerous sit-ins and other protests from people unable to access their deposits and savings.Last February there were twelve incidents in which furious bank customers, pointing guns at bank tellers, demanded to be given their own money.Imagine raiding a bank, with guns, just to get your own money!Riad Salameh's term ends next July and due to the charges made against him by the Lebanese and the six European governments, it is highly unlikely that he will stay on as Governor of the Central Bank of the country. However, due to the government paralysis prevailing- the bickering political forces in the country- were unable even to reach an agreement on the person who will become the country's President and the same will most probably happen with the person to be appointed Governor of the Central Bank.Western powers have repeatedly said that they are willing to help Lebanon, giving it assistance amounting to billions of dollars if it takes a series of tangible reforms. For example, the International Monetary Fund (IMF) declared that it was willing to offer the Lebanese government USD 11 billion in 2020 if it proposed and implemented honest reforms. However, the Lebanese political parties are not willing to give up their privileges and have never proposed any of the required far-reaching reforms.Two of the fundamental reforms that the Lebanese government would have to make before the West gives it assistance are 1) a comprehensive restructuring of the financial sector toward regaining the solvency of the banking sector; (2) a new monetary policy framework aimed at regaining confidence in the exchange rate of Lebanese Lira and its stability.This, however, presupposes a new Governor of the BDL, to take the place of 72-year-old Riad Salameh, a new governor who will enjoy the confidence of Lebanese Banks, depositors and the political parties, which have adamantly refused to make any reform that would endanger their stranglehold on the Lebanese state.Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

University Of NicosiaFOLLOW

University of nicosia, Latest News

Nicosia, July 14 A heat wave that engulfed most of Europe earlier this week has now reached Cyprus, ... ...

Nicosia, July 7 The inflation rate in Cyprus dropped to 1.9 per cent in June, the lowest level ... ...

Nicosia [Cyprus], July 3 : At the beginning of Turkish President Recep Tayyip Erdogan's rule, the reforms he made ... ...

New Delhi, June 14 The Delhi High Court on Wednesday granted bail to Preeti Chandra, wife of Unitech ... ...

Nicosia [Cyprus], June 12 : Despite the fact that he was the person mainly responsible for the death of ... ...

Nicosia [Cyprus] May 22 : In the inconclusive elections held on May 14, Turkish President Recep Tayyip Erdogan beating ... ...

Nicosia [Cyprus], May 8 : The era of Turkey's autocratic President Recep Tayyip Erdogan, who has been dominating the ... ...

By John Solomou Nicosia [Cyprus] May 1 : Riad Salameh, the long-serving Governor of the Central Bank of Lebanon ... ...