- 20
- Mar
- 2025
The Cabinet approved on Thursday the administrative appointment mechanism, reaffirming ministers’ role in the process. Under the agreed framework, the relevant minister will propose a list of hors-cadre candidates, while the final decision rests with the Cabinet.
Meanwhile, the appointment of a new Bank of Lebanon (BDL) governor remains stalled, with no breakthrough in sight. No Cabinet session is scheduled for tomorrow, Friday, to appoint a successor to Riad Salameh, as the issue remains deadlocked between the president and the prime minister.
Three candidates have emerged as leading contenders for the BDL governorship. President Joseph Aoun is backing Karim Souhaid, while Prime Minister Nawaf Salam favors Samir Assaf as his top choice, with Jihad Azour as a fallback if Assaf is ruled out.
Despite efforts by some factions to push Assaf’s candidacy, the latter has formally withdrawn, affirming his lack of interest in the role – a decision he has also communicated to several French officials, including President Emmanuel Macron.
Sources suggest that Jihad Azour may have also withdrawn from the race, expressing to close associates his reluctance to assume the BDL governorship.
According to insiders, Salam’s rejection of Souhaid is linked to President Aoun’s opposition to the appointment of one of his relatives, Firas Abi-Nassif, the preferred candidate of the “Kulluna Irada” group. However, Aoun maintains that his choice is solely based on competence and merit.
Well-informed sources confirm that the United States supports Aoun’s pick and dismiss claims that Washington has pushed for Souhaid’s exclusion from the race for the BDL governorship.
Salam asserts that the BDL governor appointment falls under the collective authority of the Cabinet, rather than being the exclusive prerogative of the president or prime minister. However, according to a longstanding Lebanese tradition, this nomination must first receive the president’s endorsement – just as with the Army commander – due to Lebanon’s sectarian power-sharing structure.
In a related development, sources suggest that Lebanon’s three top leaders have agreed to retain Acting Governor Wassim Mansouri on the BDL’s Central Council and renew his mandate as First Vice Governor. This decision reflects his successful management of BDL in recent months and his adherence to the adopted strategy that has ensured monetary stability and strengthened dollar reserves.
Regardless, the new BDL governor will inherit significant economic and financial challenges, foremost among them the restructuring of banks and the protection of depositors’ rights.
Finance Minister Yassine Jaber recently sought to reassure the public, ruling out any recovery plan that would involve writing off deposits. Current efforts aim to structure a plan for the gradual repayment of deposits, prioritizing small depositors before expanding reimbursements according to a defined timeline.
The governor will play a crucial role in evaluating the banking sector and formulating an effective solution to the depositors’ crisis. Any recovery plan must prioritize revitalizing Lebanon’s economy while safeguarding the banking system and restoring public trust.
As per the latest official figures, BDL has disbursed around $3.6 billion to depositors under its existing circulars. This amount is expected to rise further after the Central Council’s decision to increase withdrawal limits – raising the cap to $500 per month under Circular 158 and $250 per month under Circular 166, starting March 1, 2025.
Meanwhile, BDL’s reserves have continued to rise, reaching $10.746 billion by mid-March – an increase of approximately $2.2 billion since August 2023. This recovery has enabled BDL to replenish reserves lost during the last conflict while meeting all public sector obligations, including education allowances, military salaries and other financial commitments.
According to BDL sources, there are no immediate plans to raise monthly withdrawal limits. The Central Council awaits the appointment of a new governor, who will be responsible for negotiating revised caps with the government. Similarly, any changes to the exchange rate for dollar withdrawals from old “lollar” accounts will be determined by the new governor in coordination with the government.
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