Major Challenge for Lebanese Banking Sector

Saad Azhari, Chairman and GM of Blom Bank says “The highest risk for us is the government itself. Our biggest customer for loans and for the banking sector in Lebanon is the public sector, and it´s very important for us that the government keeps control of its finances and that they manage their debt and their deficit, this is very important. Having said that, I have to add that in the last 5 or 6 years the economy grew at a much faster pace than the debt.

The level of debt over GDP went down from 180% to 130% or lower, so it´s the opposite of what we see in the world in the last few years. In Lebanon the debt over GDP ratio is improving, but we still have a very high level of debt and we still have an sizable deficit and it´s very important that the government keeps control over it and we continue to lower it.”