"The Formation of a New Government committed to implementing economic reforms will increase confidence in the market and reduce risks and interest rates," said Lebanon Central Bank’s Governor, Riad Salameh.
"The Central Bank will continue to maintain monetary stability in light of the negative impact of the political stalemate," Salameh said, adding that "the bank's operations are expensive and a new Government should be formed soon to initiate reforms and ease the pressure on the bank."
Lebanon suffers from the third highest ratio of public debt to GDP and economic stagnation. The International Monetary Fund has described this situation with increasing weaknesses in the Lebanese financial system. Riad Salameh called on the Lebanese Government to carry out the necessary reforms to reduce the budget deficit and the current account balance, and dependence on the operations of the Central Bank.
Source (CNBC Arabic site, Edited)
