BEIRUT: Lebanon’s central bank will not print money to lend the state or cover the crisis-hit economy’s projected deficit, acting central bank governor Wassim Mansouri said on Friday, calling on leaders to undertake urgent financial reforms.
Mansouri told a press conference at the central bank the draft budget for 2023 included a state deficit of 24 percent, or 46 trillion Lebanese pounds. That would amount to about $500 million at the parallel rate for the collapsed currency, according to a calculation by Reuters.
“We affirm today that the central bank will not cover the deficit by lending to the government, neither in dollars or in Lebanese pounds. Lebanese currency will not be printed to cover the deficit,” he told reporters.
He said the government would pay public sector salaries for the month of August in US dollars, calculated using an exchange rate of 85,500 pounds per US dollar to “pump cash into the market through public sector employees.”
Mansouri took the helm at the central bank on Aug. 1, after the previous governor, Riad Salameh, ended his 30-year tenure with his legacy in tatters over corruption allegations, which he denies, and with the financial sector in turmoil.
Since Lebanon’s economy began to unravel in 2019, the pound has severely devalued, depositors have been locked out of their bank savings and families have been pushed into poverty.
But the country has failed to enact reforms demanded by the International Monetary Fund to gain access to $3 billion in aid.
Mansouri said that further delaying reforms “risks isolating the country from the global financial system.”
A financial crime watchdog this year warned Lebanon could be placed on a grey-list under special scrutiny over unsatisfactory practices to prevent money laundering and terrorism financing, unless it enacted reforms.
Lebanon’s central bank will not print money to lend state, cover deficit – acting governor
https://arab.news/8wuvh
Lebanon’s central bank will not print money to lend state, cover deficit – acting governor
- Draft budget for 2023 includes a state deficit of 24 percent, or 46 trillion Lebanese pounds
- Since Lebanon’s economy began to unravel in 2019, the pound has severely devalued
Closing Bell: Saudi main index slips to close at 11,228
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, lost 23.17 points, or 0.21 percent, to close at 11,228.64.
The total trading turnover of the benchmark index was SR2.99 billion ($797 million), as 170 of the stocks advanced and 82 retreated.
On the other hand, the Kingdom’s parallel market Nomu gained 449.38 points, or 1.90 percent, to close at 24,093.12. This comes as 43 of the stocks advanced while 27 retreated.
The MSCI Tadawul Index lost 6.07 points, or 0.40 percent, to close at 1,511.36.
The best-performing stock of the day was Obeikan Glass Co., whose share price surged 7.54 percent to SR27.66.
Other top performers included Alamar Foods Co., whose share price rose 6.80 percent to SR47.10, as well as Saudi Kayan Petrochemical Co., whose share price climbed 6.79 percent to SR5.66.
Saudi Investment Bank recorded the steepest drop, falling 3.21 percent to SR13.56.
Jahez International Co. for Information System Technology also saw its share price fall 3.15 percent to SR13.55.
Rabigh Refining and Petrochemical Co. declined 2.78 percent to SR7.34.
On the announcements front, Tanmiah Food Co. reported its annual financial results for the period ending Dec. 31. According to a Tadawul statement, the company recorded a net loss of SR18.8 million, compared with a net profit of SR95.8 million a year earlier.
The net loss was mainly due to ongoing market challenges that resulted in continued pricing pressures in fresh poultry, inflationary cost pressures, higher financing expenses, and depreciation and ramp-up costs from new facilities, partially offset by increased production volumes and cost-optimization initiatives.
Tanmiah Food Co. ended the session at SR58.20, up 3.72 percent.
United International Holding Co., also known as Tas’heel, announced its annual financial results for the period ending Dec. 31. A bourse filing showed the company recorded a net profit of SR273.64 million in 2025, up 23.05 percent from 2024, primarily driven by a 23.4 percent rise in revenues. The revenue growth helped lift gross profit by 23.7 percent.
Tas’heel ended the session at SR146.80, down 0.28 percent.
