The U.S. is influencing the appointment of Lebanon’s next central bank governor to combat corruption and limit Hezbollah’s financing. This involvement is part of U.S. efforts to aid Lebanon amid its economic crisis. Key candidates are being assessed based on their commitment to reform, with considerations for international cooperation on future financial support.
The United States is actively engaging with Lebanon’s government to influence the selection of the next central bank governor, aiming to combat corruption and prevent illicit financing linked to Hezbollah. This approach is part of the U.S.’ broader strategy amid Lebanon’s prolonged economic crisis that has persisted for over five years.
This initiative highlights the U.S. commitment to diminishing Hezbollah’s influence following significant setbacks for the group after last year’s conflict with Israel. Under the current administration, Lebanon has a new president, Joseph Aoun, and a cabinet that excludes Hezbollah, paving the way for appointments at key institutions such as the central bank, currently led by an interim governor since July 2023.
The U.S. is reviewing candidates’ backgrounds, as reported by several Lebanese sources and officials from the Trump administration. Potential candidates have been questioned on their strategies to combat terrorist financing and their willingness to challenge Hezbollah. U.S. officials assert that their involvement is a standard diplomatic procedure, reinforcing the necessity of appointing individuals not affiliated with Hezbollah or corruption.
Candidates under consideration include former minister Camille Abousleiman and investment firm heads Firas Abi-Nassif, Philippe Jabre, and Karim Souaid, with the next governor anticipated to play a crucial role in implementing reforms aimed at revitalizing Lebanon’s economy, which has suffered due to mismanagement and rampant corruption.
Reform is essential for the Lebanese government to engage with the International Monetary Fund for financial assistance, as international stakeholders condition support on structural changes. The U.S. is also consulting with Saudi Arabia regarding the qualifications of central bank candidates.
The selected governor will succeed Wassim Mansouri, who temporarily leads the bank following Riad Salameh’s controversial tenure, which ended amid financial ruin. Salameh’s legacy is marred by his sanctions imposed by the U.S., U.K., and Canada related to corruption allegations and financial crimes. Furthermore, Lebanon has been placed on a financial watchdog’s “grey list” due to insufficient progress in addressing issues surrounding terrorism financing and money laundering.
In summary, the United States is taking a proactive stance in Lebanon’s central bank leadership selection as part of a broader strategy to address corruption and hinder Hezbollah’s operations. The emphasis on appointing individuals who support economic reform and adhere to anti-corruption norms is crucial for facilitating Lebanon’s recovery. The outcome of this process will have significant implications not only for the banking system but also for Lebanon’s effort to engage international support for reconstruction and reform initiatives.
Original Source: www.usnews.com
