FILE PHOTO: Salim Sfeir, chairman of the Association of Banks in Lebanon and chief executive of Bank of Beirut, is pictured during an interview with Reuters in Beirut, Lebanon July 22, 2019. REUTERS/Mohamed Azakir BEIRUT (Reuters) -

by reuters -- A French official has said it might be difficult for Lebanon’s banks to prevent savers losing some of their deposits, according to the minutes of a meeting in which France outlined steps to help the crippled banking industry. The comments were made during Sept. 10 talks in Paris between senior French officials and a delegation from the Association of Banks in Lebanon (ABL). Reuters reviewed a copy of the minutes, marked confidential. France has taken the lead in international efforts to push Lebanon’s fractious politicians to implement reforms needed to attract aid and ease a crisis that has paralysed the banking sector, shutting depositors out of most of their funds. “While it is a matter of principle for the ABL that depositors should bear no losses, it may be difficult to defend this to the end. But this is a matter of negotiation,” Pierre Duquesne, President Emmanuel Macron’s envoy to coordinate international support for Lebanon, said, according to the minutes.

Lebanon’s central bank and commercial bankers have sought to prevent a “haircut”, or formal reduction in balances held on deposit accounts. But savers with U.S. dollar accounts in Lebanon say they have already lost money as they cannot access funds or can only do so by exchanging into Lebanese pounds below market rates. The Lebanese pound, which was pegged to the dollar for more than two decades, has crashed during the financial crisis. The French Foreign Ministry had no immediate comment.

by thenational.ae -- Joyce Karam -- The US announced sanctions on Lebanon-based Arch Consulting and Meamar Construction on Thursday, a week after it backlisted two former ministers accused of enabling Hezbollah. The US said it sanctioned the two companies for being owned, controlled, or directed by Hezbollah. It also added Hezbollah Executive Council official Sultan Khalifah Asaad, who it said was tied to both companies, to its OFAC list of sanctioned individuals. “Through Hezbollah’s exploitation of the Lebanese economy and manipulation of corrupt Lebanese officials, companies associated with the terrorist organisation are awarded government contracts,” said Secretary of the Treasury Steven Mnuchin. “The United States remains committed to targeting Hezbollah and its supporters as they corruptly abuse Lebanese resources to enrich their leaders while the Lebanese people suffer from inadequate services.”

The US Treasury said that both companies funnelled money to the leadership of Hezbollah from government and private contracts with the assistance of former Lebanese transport minister Youssef Fenianos and former finance minister Ali Hassan Khalil – two officials hit with sanctions on September 8. Seperatly on Thursday, the US sanctioned two Iranian entities and 45 associated individuals who carried out a malware campaign targeting Iranian dissidents, journalists and international travel companies. The sanctions on entities tied to Hezbollah financing came as the Iran-backed political-party-cum-militia said it was standing firm on its insistence to name ministers to the new government despite attempts to form a technical administration free of political appointees. Hezbollah said on Thursday that it would be naming a Shiite as the next finance minister, despite the issue stalling the formation of the new government and attempts by French President Emmanuel Macron to broker a new political initiative to pass reforms needed to drag the country out of the worst economic crisis in decades and rebuild the shattered capital after a massive explosion on August 4.

Prime Minister-designate Mustapha Adib met with President Michel Aoun on Thursday to discuss the stalled formation of government. He said afterwards that they agreed to allow more time to form a new administration. Firas Maksad, a Professor at George Washington University, saw the sanctions as part of Washington’s strategy to attempt to isolate Hezbollah and limit Iran’s leverage in Beirut. “The US administration is utilising targeted sanctions as a cost-free tool against Iranian influence in Beirut. At a minimum, this strategy could help distance Hezbollah from some of its allies. Whether it can succeed in encouraging the formation of a more neutral technocratic government remains to be seen,” Mr Maksad told The National. “In Beirut, the French initiative to form a neutral technocratic government is on its last leg. Another indication that Iran and Hezbollah are unwilling to cede any influence ahead of the US elections, risking a catastrophic financial crisis for Lebanon in the process.”

by cfr.org — The government’s inefficacy is tied to the sectarian political order enshrined in a 1943 agreement. To reflect the major …

by Written By Shubham Bose - republicworld.com -- French President Emmanuel Macron said he regrets the failure of Lebanese lawmakers at forming a new government as per the 15-day deadline agreed upon by both countries. The statement was released by his office on Wednesday, September 16. According to reports, the deadline was set as a part of Macron's initiative in Lebanon following the events of the Beirut blast and the French President has been pressing the Lebanese lawmakers to select experts to the 'Crisis Cabinet' who could guide the country out of its current political and economic turmoil.

'Not too late' to form government: Macron

As per reports, despite missing the deadline, Macron has expressed that it is not too late for Lebanon to form a crisis cabinet. However, opposing political parties in Lebanon are unable to reach a consensus regarding the appointment of key portfolios such as the Finance Ministry. According to reports, the French President in his statement said, “It is not yet too late: everyone must assume their responsibilities and finally act in the sole interest of Lebanon by allowing Moustapha Adib to form a government that reflects the seriousness of the situation.” Moustapha Adib is the current Prime Minister-designate of Lebanon who took the top chair following the resignation of the elected Lebanese government in the wake of public anger.