Sun Mar 30 10:58:14 UTC 2025: ## Lebanon Appoints New Central Bank Governor Amidst Deepening Economic Crisis

**Beirut, Lebanon** – Lebanon has appointed Karim Souaid as its new central bank governor, a decision sparking intense controversy and raising concerns about the country’s ability to secure crucial international aid. Souaid, a businessman and founder of the Bahrain-based Growthgate Partners, enjoys the backing of Lebanon’s powerful banking lobby and several major political parties, including Hezbollah and the Lebanese Forces. However, this support has fueled accusations that he is too closely aligned with the very forces responsible for the nation’s devastating economic crisis.

Lebanon is grappling with one of history’s worst economic collapses, exacerbated by a brutal war with Israel and the ongoing need for billions of dollars in reconstruction funds. The World Bank estimates $11 billion is needed, with International Monetary Fund (IMF) support crucial for unlocking further international assistance. Souaid’s appointment, however, is seen by many as a setback to securing this aid.

Sources indicate that Souaid’s proposed policies don’t align with the IMF’s required reforms. Critics, including Prime Minister Nawaf Salam who voiced reservations, argue that Souaid’s ties to the banking sector will prioritize the interests of banks over those of the Lebanese people. They fear a repeat of the mismanagement under the previous governor, Riad Salameh, who faces numerous financial crime investigations.

Opponents highlight a 2023 paper, funded by Souaid’s firm, suggesting up to 90 percent haircuts for depositors. This, they claim, would absolve banks and their political allies from responsibility for the crisis, while placing the burden of losses on the already struggling state. Reformists argue that banks, not the state, should bear the brunt of the losses to repay depositors.

The appointment has ignited protests from the Depositors Union and other reformist groups, who accuse Souaid of representing a “mafia” of oligarchs prioritizing personal gain over national recovery. They warn that Souaid’s policies risk turning Lebanon into a state controlled by a select few, further entrenching inequality and hindering any meaningful recovery. The battle for accountability and equitable economic reform in Lebanon continues, with Souaid’s appointment representing a significant blow to those advocating for change.

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