Riad Salameh, the Governor of the Banque du Liban stated during the monthly meeting with the Association of Banks in Lebanon, that he stopped the housing lending supported by the Banque du Liban to ease the demand for the dollar. Salameh talked about removing the financial bubble and the need to overcome this difficult stage.
The discussion between Salameh and the banks focused on issues related to the monetary situation and the fluctuations in the prices of Eurobonds and the T-bills.
Salameh explained to the banks that "the cash market is under control," noting that "fluctuations in interest rates are left to the market, especially as interest rates rose to high levels because of the financial plans implemented by the Bank of Lebanon," pointing to "a decline in external demand for Eurobonds, Especially the segments that due between 2019 and 2024."
Salameh added: "what happens in terms of the decline in short-term maturity bonds, is that the bondholders abroad are assessing Lebanon's ability to renew these bonds as the government formation falters. In other words, foreign investors believe that Lebanon will not be able to find funding for these bonds on their due dates, prompting them to get rid of them and sell them quickly."
Source (e-economy website, Edited)
