BDL governor advocates a 'fair solution' for deposits in meeting with Saudi counterpart in Riyadh

Banque du Liban (BDL, central bank) Governor Karim Souhaid met with Saudi Central Bank Gov. Ayman Mohammed al-Sayyari in Riyadh on the sidelines of the SAMA-BIS Innovation Summit, held in partnership with the Bank for International Settlements, the BDL said Wednesday.

Souhaid also met with SAMA Vice Gov. Khaled Al-Zaher and called for a “fair solution” to the issue of frozen deposits in Lebanon’s banking system.

“During these meetings, a wide range of bilateral issues was discussed, including monetary policies, banking-sector regulation, financial-market stability, and mechanisms to combat all forms of money laundering and terrorist financing in the financial sector,” the statement said.

Souhaid briefed Saudi officials on the latest developments in Lebanon’s talks with the International Monetary Fund (IMF), noting Saudi Arabia’s central role as a major IMF partner — the kingdom is the 10th-largest contributor to IMF capital, with 2.01 percent of voting rights.

Riyadh could also become one of the most significant contributors to Lebanon’s reconstruction after the war between Hezbollah and Israel, if Beirut carries out required reforms and restores the state’s monopoly over arms, the BDL added.

Souhaid stressed the need to “reach a fair and timely solution” to the repayment of bank deposits, which have been frozen under informal and illegal restrictions imposed by Lebanese banks since the 2019 financial crash. Progress with the IMF remains slow, largely because of disagreements between the governor and the Fund over how to resolve the deposit-restitution issue.

Both sides agreed to keep communication channels open and to exchange regular updates.