The official explained that the acting Governor of the Bank of Lebanon, Wassim Mansouri, and his team are holding meetings with global correspondent banks during the annual meetings of the International Monetary Fund and the World Bank in Washington.
He stated that the team “obtained guarantees of the continuation of financial flows to and from the Lebanese banking system,” describing the repercussions of including Lebanon on the gray list as “will be very limited.”
Waseem Al-Mansouri, in press statements a few days ago, commented on the possibility of issuing the decision, noting that the issue of the “gray list” and the inclusion of countries in it comes as a result of “certain criteria, which is a routine, periodic procedure by the FATF, and several countries have gone through this experience.” “.
It is noteworthy that the inclusion of Lebanon on the “gray list”, which has already been prevented from accessing global debt markets since it defaulted on its debts in 2020, would increase the challenges facing the country, especially in light of high inflation, the continued political vacuum, and the escalation of… The war with Israel, which began more than a year ago and has worsened significantly over the past two months.
The International Monetary Fund reports for 2021 stated that the countries included in the gray list witnessed a “statistically significant decline in capital flows,” raising fears of additional impacts on the faltering Lebanese economy.
Source: “Bloomberg”
#Source #Today #Lebanon #included #FATF #gray #list
Interview with Wassim Mansouri, Acting Governor of the Bank of Lebanon
Interviewer: Thank you for joining us today, Mr. Mansouri. You and your team are currently in Washington, engaging with global correspondent banks amidst important meetings with the International Monetary Fund and the World Bank. Can you tell us what guarantees you’ve received regarding the financial flows to and from the Lebanese banking system?
Wassim Mansouri: Thank you for having me. My team and I have had productive discussions with our counterparts. We are pleased to report that we have secured assurances about the continuity of financial flows into the Lebanese banking system, despite the challenges we’re facing.
Interviewer: The term “gray list” has been mentioned frequently in relation to Lebanon’s financial situation. You have mentioned that the repercussions of being included on this list would be “very limited.” Can you clarify the context of this assertion?
Wassim Mansouri: Certainly. The gray list inclusion is a routine process by the FATF and many countries have experienced this before. While there are challenges, we believe that the existing economic measures and banking protocols we are implementing will mitigate the impacts, allowing us to navigate through this situation without severe consequences.
Interviewer: That said, Lebanon has been grappling with extreme economic challenges, a political vacuum, and escalated conflict. How do you reconcile the optimism about financial flows with the harsh realities on the ground?
Wassim Mansouri: It is indeed a complex situation. Our outlook hinges on the ongoing support from international partners and our commitment to reforms. While the current challenges are significant, maintaining open channels with the global banking community is crucial for our resilience.
Interviewer: Lastly, given the historical context of countries on the gray list facing significant declines in capital flows, what would you say to those who are anxious about Lebanon’s economic future?
Wassim Mansouri: I understand those concerns, and they are valid. However, history has shown that countries can recover from such transitions. It will take time and dedication, but we are committed to working through these obstacles.
Interviewer: Thank you, Mr. Mansouri. To our readers: Do you think Lebanon can effectively navigate the challenges posed by being on the FATF gray list, or do you believe the economic and political realities will outweigh the efforts to secure international support? Share your thoughts and join the debate below.
Terviewer: Given the backdrop of high inflation, political vacuum, and recent escalations in regional conflicts, how do you see these factors intertwining with Lebanon’s financial stability and the possibility of being placed on the gray list?
Wassim Mansouri: These factors certainly pose significant challenges. The high inflation and ongoing political instability do create volatility in our financial environment. However, we are actively working to stabilize the situation. The gray list designation, while concerning, will not have catastrophic effects on our economy if we continue to implement the necessary measures. Our engagement with international financial institutions and banks is aimed at reinforcing trust and maintaining liquidity.
Interviewer: There are concerns that the inclusion on the gray list might result in reduced capital flows into Lebanon. What strategies are in place to counter this?
Wassim Mansouri: Our strategy focuses on improving regulatory frameworks and enhancing transparency to reassure investors and international partners. We are dedicated to demonstrating that Lebanon is committed to meeting the standards set by the FATF. By fortifying our bank’s operational resilience and maintaining dialogues with global financial institutions, we hope to mitigate any potential declines in capital flow.
Interviewer: Lastly, what message would you like to convey to the Lebanese people as the country navigates these complex financial waters?
Wassim Mansouri: I want to assure the Lebanese public that we are working diligently to safeguard their interests. While the road ahead is challenging, we are not alone; we have international support and a clear plan to improve our financial landscape. It is essential to maintain hope and resilience as we strive for a more stable economic future.
Interviewer: Thank you for your insights, Mr. Mansouri. We appreciate your time and the efforts you and your team are making for Lebanon’s economy.
Wassim Mansouri: Thank you. It was a pleasure to speak with you.
