News
Latest News
news bulletin
Breaking Headlines
Israel-Gaza War Updates
Variety and Tech
Sports News
Middle East News
World News
Lebanon News
Press Highlights
Lebanon Economy
News Bulletin Reports
Other News
Breaking Headlines
Israel-Gaza War Updates
Variety and Tech
Sports News
Middle East News
World News
Lebanon News
Press Highlights
Lebanon Economy
News Bulletin Reports
Beirut
32
o
Bekaa
34
o
Keserwan
33
o
Metn
33
o
Mount Lebanon
29
o
North
34
o
South
32
o
Live
Video
Audio
Schedule
shows
العربية
watching now
The Time
SUBSCRIBE
Home
Notification
Live
Video
Audio
shows
Beirut
32
o
Bekaa
34
o
Keserwan
33
o
Metn
33
o
Mount Lebanon
29
o
North
34
o
South
32
o
News
Programs
The News
Breaking Headlines
Israel-Gaza War Updates
Variety and Tech
Sports News
Middle East News
World News
Lebanon News
Press Highlights
Lebanon Economy
News Bulletin Reports
Programs
Documentaries
Lebanon’s Centennial
News Bulletin
The Untold History
Talk Show
Series
Sports
Variety
Other
Comedy
Oldies
Breaking News
Latest News
Highlighted News
Most Read
Videos
العربية
Watch the latest programs and the latest developments on your favorite screen
Shows
Join millions of followers
Who We Are
Contact Us
Advertise With Us
Careers
Channel frequencies
Privacy Policy
Terms and Conditions
The Story of Salameh: Tracing the roots of Lebanon’s soaring debt
News Bulletin Reports
2023-07-28 | 11:01
High views
Share
Share
4
min
The Story of Salameh: Tracing the roots of Lebanon’s soaring debt
Riad Salameh and Government Debt: How it all started
Recently, there have been buzzing discussions surrounding the enigmatic figure of Riad Salameh.
Some regard him as an exceptional personality who safeguarded the Lebanese lira amid widespread corruption throughout the state. Conversely, others view Salameh as the maestro behind a Ponzi scheme, benefiting from state waste and appeasing a corrupt authority.
It all traces back to the year 1994 when Lebanon was grappling with the aftermath of a civil war and a soaring national debt; the government of Rafik Hariri decided to issue dollar-denominated Eurobonds. This move was favored due to the lower interest rates, although Lebanon does not control the US dollar, the currency used for these bonds.
Starting with a mere $400 million in Eurobonds in 1994, the debt accumulated to a staggering $30 billion before the crisis of 2019 hit.
By 2000, the country faced negative economic indicators, including growth problems, fiscal deficits, and a public debt that surpassed $20 billion, exceeding the country's dollar reserves. Lebanon even experienced a negative balance of payments, meaning more dollars were exiting the country than coming in.
Faced with such challenges, then-President Rafik Hariri and his team sought international assistance for rescue.
Therefore, the conferences of Paris I in 2001 and Paris II at the end of 2002 saw Lebanon receiving financial facilities and loans in exchange for pledges to implement reforms. The global attention garnered by these conferences painted a positive image of the country, boosting confidence in its economy and banking sector.
The influx of deposits into banks witnessed significant growth ($6 billion in 2003 and $7.3 billion in 2004), leading to economic growth and an increased inflow of foreign currency compared to the outflow during that period.
However, the economic gloom set in with the assassination of President Hariri in 2005, followed by a series of targeted killings of anti-Syrian figures and the July 2006 war. The economy suffered, and the government's haphazard exchange rate policy persisted, further exacerbating the national debt.
In 2007, Lebanon once again sought international aid and convened Paris III. Around $7.5 billion in assistance was secured, but a significant portion was prey to brokerage and waste, while promises of reforms remained largely unfulfilled.
Nevertheless, the momentum and positive impression left by Paris III led to an increase in bank deposits that year ($8 billion).
During the Paris III conference, French President Chirac stated, "the monetary stability desired by Rafik Hariri, and of which Governor Riad Salameh is a vigilant and respected guardian, is an essential condition for the confidence of the financial community."
Salameh, who maintained relationships with various parties internally and garnered international attention, was seen as a potential candidate for the presidency after the end of President Emile Lahoud's term in November 2007.
Regardless, the Doha Agreement eventually led to Michel Suleiman assuming the presidency, leaving Salameh's desire unfulfilled as he remained in his position as the governor of the Central Bank.
Lebanon News
Lebanon Economy
News Bulletin Reports
Story
Riad Salameh
Tracing
Roots
Lebanon
Soaring
Debt
BDL
Governor
Next
Bekaa Valley: A new 'frontline' in Israel's target list
The Iranian Response: Awaiting Retaliation Amidst Escalating Tensions
Previous
Recommended For You
d-none hideMe
0
News Bulletin Reports
13:08
Securing nomination: Can Harris secure Michigan delegates for Democratic nomination?
News Bulletin Reports
13:08
Securing nomination: Can Harris secure Michigan delegates for Democratic nomination?
0
News Bulletin Reports
13:06
Netanyahu's conditions: Israel and Hamas struggle to overcome deadlock in ongoing negotiations
News Bulletin Reports
13:06
Netanyahu's conditions: Israel and Hamas struggle to overcome deadlock in ongoing negotiations
0
News Bulletin Reports
13:05
War resolution: Netanyahu confronted with ceasefire demands in talks with US leaders
News Bulletin Reports
13:05
War resolution: Netanyahu confronted with ceasefire demands in talks with US leaders
0
News Bulletin Reports
2024-07-25
Border negotiations: Lebanon’s coordinated efforts for long-term border stability
News Bulletin Reports
2024-07-25
Border negotiations: Lebanon’s coordinated efforts for long-term border stability
Subscribe to our VOD
SUBSCRIBE
Our visitors readings
d-none hideMe
0
World News
2024-04-13
Police shut down pro-Palestinian gathering in Germany
World News
2024-04-13
Police shut down pro-Palestinian gathering in Germany
0
Sports News
04:54
Kazakhstan win first medal of Olympics with bronze in 10m mixed team shooting
Sports News
04:54
Kazakhstan win first medal of Olympics with bronze in 10m mixed team shooting
0
Variety and Tech
2024-06-22
Miss Lebanon 2024 pageant to air live in July on LBCI
Variety and Tech
2024-06-22
Miss Lebanon 2024 pageant to air live in July on LBCI
0
Lebanon Economy
2024-07-05
Fuel prices increase in Lebanon
Lebanon Economy
2024-07-05
Fuel prices increase in Lebanon
Videos
d-none hideMe
0
World News
2024-07-21
Full Transcript: Trump's Coordinator of Arab Relations Discusses Plan to Win Arab Voters and Achieve Peace
World News
2024-07-21
Full Transcript: Trump's Coordinator of Arab Relations Discusses Plan to Win Arab Voters and Achieve Peace
0
Lebanon News
2024-07-18
Two dead in Israeli airstrike on Jmeijmeh, south Lebanon (Video)
Lebanon News
2024-07-18
Two dead in Israeli airstrike on Jmeijmeh, south Lebanon (Video)
0
Lebanon News
2024-07-11
Hezbollah's Ibrahim Moussawi to CNN: Regional powers do not seek full-scale conflict
Lebanon News
2024-07-11
Hezbollah's Ibrahim Moussawi to CNN: Regional powers do not seek full-scale conflict
0
Lebanon News
2024-07-09
Hezbollah’s "Hudhud" shows new footage of Israeli sites
Lebanon News
2024-07-09
Hezbollah’s "Hudhud" shows new footage of Israeli sites
0
Lebanon News
2024-06-18
Hezbollah scouts areas in northern Israel: What the hoopoe came back with (Video)
Lebanon News
2024-06-18
Hezbollah scouts areas in northern Israel: What the hoopoe came back with (Video)
0
Lebanon News
2024-06-12
Over 100 rockets launched from southern Lebanon toward northern Israel (Video)
Lebanon News
2024-06-12
Over 100 rockets launched from southern Lebanon toward northern Israel (Video)
0
Lebanon News
2024-06-10
Video shows Israeli drone downing in Iqlim al-Tuffah, South Lebanon
Lebanon News
2024-06-10
Video shows Israeli drone downing in Iqlim al-Tuffah, South Lebanon
0
Middle East News
2024-05-21
Funeral ceremony of the Iranian president begins in Tabriz (Video)
Middle East News
2024-05-21
Funeral ceremony of the Iranian president begins in Tabriz (Video)
0
Lebanon News
2024-05-14
Exclusive LBCI interview: Canadian FM urges ceasefire and Resolution 1701 adherence in Lebanon talks, discusses Canadian support for LAF, UNIFIL
Lebanon News
2024-05-14
Exclusive LBCI interview: Canadian FM urges ceasefire and Resolution 1701 adherence in Lebanon talks, discusses Canadian support for LAF, UNIFIL
Most read
d-none hideMe
24 hours
7 days
Month
1
Lebanon News
10:32
The Countdown Is On! Summer's Most Awaited Event: Miss Lebanon, Live Tomorrow at 8:30 PM on LBCI and lbcgroup.tv
Lebanon News
10:32
The Countdown Is On! Summer's Most Awaited Event: Miss Lebanon, Live Tomorrow at 8:30 PM on LBCI and lbcgroup.tv
2
Lebanon News
10:42
US President Biden issues deferred enforced departure for Lebanese nationals, protecting them from deportation for 18 months
Lebanon News
10:42
US President Biden issues deferred enforced departure for Lebanese nationals, protecting them from deportation for 18 months
3
Lebanon News
11:33
US President Biden’s deferred enforced departure for Lebanese nationals is not an indication of imminence of further escalation
Lebanon News
11:33
US President Biden’s deferred enforced departure for Lebanese nationals is not an indication of imminence of further escalation
4
Lebanon News
06:58
Israeli navy intercepts drone approaching Israel's economic waters from Lebanon
Lebanon News
06:58
Israeli navy intercepts drone approaching Israel's economic waters from Lebanon
5
News Bulletin Reports
13:05
War resolution: Netanyahu confronted with ceasefire demands in talks with US leaders
News Bulletin Reports
13:05
War resolution: Netanyahu confronted with ceasefire demands in talks with US leaders
6
News Bulletin Reports
13:06
Netanyahu's conditions: Israel and Hamas struggle to overcome deadlock in ongoing negotiations
News Bulletin Reports
13:06
Netanyahu's conditions: Israel and Hamas struggle to overcome deadlock in ongoing negotiations
7
News Bulletin Reports
13:08
Securing nomination: Can Harris secure Michigan delegates for Democratic nomination?
News Bulletin Reports
13:08
Securing nomination: Can Harris secure Michigan delegates for Democratic nomination?
8
Israel-Gaza War Updates
04:46
Israel tells Gazans to temporarily evacuate southern Khan Younis areas
Israel-Gaza War Updates
04:46
Israel tells Gazans to temporarily evacuate southern Khan Younis areas
Download now the LBCI mobile app
To see the latest news, the latest daily programs in Lebanon and the world
Google Play
App Store
We use
cookies
We use
cookies
to make
your experience on this
website better.
Accept
Learn More