Reuters: The Trump administration declined the files of the candidates for the position of governor of Lebanon and interviews

Five informed sources told Reuters today, Sunday, that the United States is holding consultations with the Lebanese government to choose the new ruler of the Lebanon Bank (Central Bank). Washington’s awareness of its opinion on the candidates for the highest position in forming the monetary policy of Lebanon is the latest example of the unusual American approach in dealing with the country that has been witnessing a financial crisis that has been going on for more than five years that led to the collapse of its economy.

The American intervention also shows the continued focus of the United States on weakening the Iranian -backed Hezbollah group, which is shrinking its influence on the Lebanese government after the Israeli aggression on Lebanon last year. Lebanon has been elected since then Joseph Aoun, supported by the United States, as President of the Republic, and a new government took power without a direct role for Hezbollah. This government has now to hold vacant positions, including the position of governor of the Bank of Lebanon, which is run by an interim governor since July 2023.

Three Lebanese and Western diplomats and officials from the administration of US President Donald Trump said the United States has declined the files of a number of candidates for this position. The sources spoke to Reuters to discuss the role of Washington in the selection process, provided that its identity was not published. The details of the selection process have not been published before.

Two Lebanese sources and officials from the Trump administration said that US officials met some potential candidates in Washington and at the American embassy in Lebanon.
Lebanese sources stated that American officials asked the candidates questions, such as how they intend to combat “financing terrorism” through the Lebanese banking system, and if they are ready to confront Hezbollah. The Ministry of Foreign Affairs, the White House, the Lebanese President and Prime Minister have yet to respond to requests for comment.

The Trump administration official said the meetings are part of the “usual diplomacy”, but added that the United States clarifies the Lebanese government its directives on the qualifications of the candidates. The official explained that “the guidelines are: neither Hezbollah nor for anyone involved in corruption. This is necessary from an economic perspective.” He continued: “You need a person who is reforming, calls for him and refuses to turn a blind eye whenever people try to do their business as usual in Lebanon.”

The Lebanese sources said that the candidates who are seen seriously are Camille Abu Suleiman, the former Minister of Labor, Firas Abi Nassif, who heads an investment company, and Philip Jabr and Karim Saeed, both of whom heads two companies owned by him to manage assets.
The next ruler of the Lebanese Bank will play an important role in any economic and financial reforms, which Aoun and Prime Minister Nawaf Salam pledged to give it priority to help Lebanon get out of the financial collapse that started in 2019.

The appointment of the ruler of the Bank of Lebanon soon

“Some basic appointments will take place soon, with other appointments to be completed in subsequent sessions, including the appointment of a new ruler of the Bank of Lebanon.” He added that the duration of his ruler ends soon, and “therefore requires, as soon as possible, a new ruler of the central bank, to conduct the delivery and delivery process comfortably, and receive all files comfortably, and he can complete the coming period accurately, and cooperates with the government as we cooperate positively, and I am sure that this will happen.”

Lebanon has been witnessing an unprecedented economic crisis since 2019, with the majority of the population below the poverty line, according to the United Nations. The international community required the authorities to implement urgent reforms in several sectors, including restructuring the banking sector, to obtain financial support. In April 2022, the Monetary Fund declared initial agreements with Lebanon on a three -billion auxiliary plan for four years, but the implementation of the plan was conditional on the government’s commitment to implement prior reforms, the majority of which did not follow the application of the application.

The Lebanese Ministry of Finance said in a statement last Wednesday, quoting Minister Yassin Jaber, that the government presented its priorities in the coming period to the International Monetary Fund, including the appointment of a ruler of Lebanon (Central Bank). Jaber said that the International Monetary Fund will visit Lebanon again in early April if a new ruler is appointed to the Bank of Lebanon. Jaber added, according to the statement, that there will be a new agreement between Lebanon and the International Monetary Fund. The minister did not reveal the details of the agreement, but he said that the government is costly to develop a new plan with the Washington -based bank.

The head of the fund mission to Lebanon, Ernesto Ramirez Reago, said in a statement last Thursday, at the conclusion of a visit to Beirut, that he had conducted “fruitful discussions” with Lebanese officials “about their policies and reform agenda. He added: “The team welcomed the authorities’ request a new program supported by the International Monetary Fund to enhance their efforts in facing the great economic challenges facing Lebanon.”

Ramirez Reago added that the measures taken by the authorities, including the stability of the exchange rate and low inflation, are “insufficient to meet the continuous economic, financial and social challenges.” Ramirez Reago stressed that the IMF “is ready, in cooperation with the international community, to support the efforts of the authorities in facing these challenges”, and its employees will remain on “close contact with the authorities to help them develop a comprehensive economic reform program that focuses on sustaining public finances and debt, restructuring the financial sector, and stimulating economic growth” from other reforms.

Last Thursday, Lebanese President Joseph Aoun put the cabinet in the atmosphere of its meetings with the IMF delegation. During his recitation of the decisions of the Council of Ministers, the Minister of Information, Paul Morcos, quoted his reference to the IMF focus on “the necessity of reaching a program with the fund before the summer,” explaining that “the basis is to restore confidence in Lebanon, internally and externally, which requires reforming the economic, banking and financial conditions.”

Aoun said, according to Marcus, that the fund stressed the approval of the banks of banking secrecy and the restructuring of banks. Prime Minister Nawaf Salam stressed during his meeting with the Fund delegation that “the goal of Lebanon is to reach a program with the fund as soon as possible, and that, contrary to what happened in the past, there is a unified team with a unified vision that has the task of negotiating with the fund.”

Previous talks with the IMF collided with the contrast of opinions between the government and parliament regarding estimating the size of the losses and how to approve the required reforms. At the end of last February, the Lebanese government headed by Nawaf Salam won the confidence of the House of Representatives by voting 95 deputies in its favor, after talks that lasted more than 3 weeks with various political parties, where government positions are distributed by the quota system.

After a presidential vacuum exceeding two years as a result of political differences, the Lebanese parliament was elected last January, Aoun, as president of the country, with the support of 99 deputies out of 128. The recent Israeli aggression against Lebanon aggravated the economic conditions in Lebanon, after he left widespread destruction in housing units and infrastructure. Last week, the World Bank estimated the cost of reconstruction and recovery of about $ 11 billion. He said that “the economic cost of the conflict in Lebanon is estimated at about 14 billion dollars.”

(Reuters, New Arab)