Banque du Liban's headquarters in Beirut. (Credit: Philippe Hage Boutros)
In an an unusual move that marks a new turning point in the governance of Banque du Liban (BDL), less than a month before the end of the mandate of the current governor, Riad Salameh, the central bank's four vice-governors called on authorities to name Salameh's successor.
According to a press release issued by the institution's four vice-governors, who have been in office since 2020, Wassim Mansouri (Shiite, close to Amal), Bachir Yakzan (Druze, gravitating between the Progressive Socialist Party and the Lebanese Democratic Party), Salim Chahine (Sunni, supported by former Prime Minister HassaneDiab) and Alexandre Moradian (Armenian-Orthodox, supported by the Tachnag) called on the ruling class to find a successor to Salameh, who has been in office for 30 years.
According to Article 18 of the Code of Money and Credit, cited by the vice-governors in their text, the task of naming a successor falls to the cabinet on the proposal of the finance minister.
In the event of failure, the vice-governors said they would "take the necessary measures to preserve the national interest."
According to a source close to BDL contacted by L'Orient-Le Jour, this wording means that they will tender their resignation. In their press release, the vice-governors criticize the possibility of the "highest monetary authority in the country" being exercised by a senior official in charge of managing current affairs. According to the Code of Money and Credit, it is the vice-governor who must take over the reins of BDL in the event of a vacancy in its governorship before a replacement has been designated (article 27).
In an interview with the daily An-Nahar in early June, caretaker Prime Minister Najib Mikati said, "It is normal, following the vacancy at the head of BDL, for the governor's prerogatives to be transferred to the vice-governor, in accordance with the Code of Money and Credit."
In publishing their joint statement, the vice-governors explicitly say that this option is not acceptable, especially in the current context marked by a presidential vacuum in effect since the end of October, a caretaker government since May 2022, and given the "political divergences" as well as the absence of a "clear plan" to resolve the crisis that the country has been experiencing since 2019.
In office for 30 years, Salameh is the target of several legal proceedings launched against him in Europe concerning the way he has built up a wealth of real estate assets outside the country. Aged 72, the senior official has repeatedly denied these accusations and stated that he does not intend to stand for a sixth term.
Lebanon pledged in April 2022 to implement several fundamental reforms in order to obtain financial aid from the International Monetary Fund, but is far from having fulfilled its promises more than a year later.
