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Is Lebanon’s new central bank governor ‘another Riad Salameh’? | Business and Economy News

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Beirut, Lebanon – Lebanon’s council of ministers has elected Karim Souaid as central bank governor – a candidate backed by the country’s bank lobby and a businessman who many say is emblematic of the malaise Lebanon is suffering.

Just out of a brutal war with Israel, Lebanon is in dire need of reconstruction and recovery money. Since 2019, Lebanon has suffered through one of modern history’s worst economic crises. State services have been battered, including the electricity sector, leaving those who can afford the cost to rely on private generators.

The World Bank estimates $11bn is needed for the job, and the next governor is crucial for unlocking funds from the International Monetary Fund (IMF) that will encourage more support from the international community.

On Wednesday, Lebanese media reports marked Souaid, the founder of Bahrain-based private investment firm Growthgate Partners, as the frontrunner.

Sources told Al Jazeera that while the IMF did not comment on candidates, Souaid’s proposed policies do not match the required reforms.

‘Another Riad Salame’

Two camps had emerged in response to Souaid’s candidacy.

On one side were the banks, banking lobby, most of the significant traditional parties – including ideological adversaries like Hezbollah and the Lebanese Forces – and President Joseph Aoun, whose economic adviser, Varouj Nerguizian, is a board member of Souaid’s investment firm.

On the other side were some reformist ministers, independent MPs, reform-minded NGOs, and sceptics, including Prime Minister Nawaf Salam.

After Souaid was voted in, Salam delivered a speech admitting he and other ministers had reservations about the new appointment.

“Any governor must abide by the financial policy of our reformist government as expressed by the ministerial statement [that includes] a new programme with the International Monetary Fund, restructuring banks, and devising a complete plan according to the best international standards to preserve depositors’ rights,” Salam said.

Souaid has yet to comment on what his plan for the central bank would be.

But those opposed to Souaid say he is too close to power and his policies overwhelmingly favour the banking lobby. Former Prime Minister Najib Mikati’s son Maher is also a board member of Souaid’s investment firm.

FILE PHOTO: A view shows Lebanon's Central Bank building in Beirut, Lebanon September 3, 2024. REUTERS/Mohamed Azakir//File Photo
Critics say central bank Governor Souaid’s policies will not please the IMF [File: Mohamed Azakir/Reuters]

“They’re trying to bring in another Riad Salameh,” said Mohammad Farida, economic adviser for the Depositors Union, an NGO that argues that banks and not depositors should be held accountable for the 2019 financial crisis.

Salameh is the former central bank governor who was arrested in September for financial crimes in Lebanon and is the subject of numerous financial investigations in five different European countries.

Every minister will be ‘held accountable’

Lebanon is entering the sixth year of a devastating economic crisis and badly needs relief funds from the IMF, which has laid out several reforms Lebanon needs to apply to receive those funds.

A parallel battle for accountability for the tens of billions in economic losses has been at an impasse for five years as the political class, backed by the banking lobby, focused on scuttling any effort at passing reforms the IMF deems critical to unlock $3bn in relief funds.

The fight essentially comes down to who should bear responsibility for the 2019 economic collapse and bear the losses.

The pro-banker side believes the state is primarily responsible for the collapse after defaulting on eurobonds. To recover depositors’ money, they say, the state should pay the banks back through actions like selling off state assets. This is the side supporting Souaid.

Souaid’s ideas for the state are thought to be outlined in a 2023 paper, financed by his investment firm, that recommends haircuts of up to 90 percent, which would fall on depositors.

Critics say this would allow bankers and the politicians who backed and profited from them to escape accountability.

“It would basically incentivise them to take the same behaviour [that caused the economic and banking crisis] with the same risks,” Walid Marrouch, an economics professor at the Lebanese American University, said.

The pro-reform side, which includes the Depositors Union, says piling the losses on the state will bankrupt it and hurt citizens who did nothing wrong, so the commercial banks should foot the losses to repay depositors.

These reforms would hit bank owners the hardest, forcing some banks to merge or close entirely.

At an emergency news conference called by the Depositors’ Union on Wednesday to oppose Souaid’s selection, Halime Kaakour, one of 13 Lebanese MPs elected in 2022 on a post-revolution sentiment demanding reform, stated: “We will hold each minister accountable who nominates a central bank governor that will burden the state with $76bn in losses.”

Lebanese lawmaker Halime Kaakour arrives to attends a parliament session at the parliament building in Beirut, Lebanon, Wednesday, June 14, 2023. (AP Photo/Hassan Ammar)
Among Souaid’s critics are independent and pro-reform MPs, including Halime Kaakour  [Hassan Ammar/AP]

The $76bn figure is an estimate, as the exact figure is unknown. During the crisis, many depositors withdrew their money while the Lebanese lira was plummeting, while some of the country’s wealthiest moved their money abroad.

‘It’s a mafia’

In 2020, the Hassan Diab government proposed a solution that experts told Al Jazeera would have met the IMF’s specifications. But the solution was derailed by political deadlock, and depositors suffered.

As banks locked down and citizens were unable to withdraw their money, the exchange rate devalued by more than 95 percent. Before the crisis, the lira stood at 1,500 to the US dollar – today, $1 is equal to 89,000 lira.

With many of the country’s former middle class thrust into poverty, some citizens were forced to hold up banks to withdraw their money.

After the vast destruction caused by Israel’s latest war on Lebanon, the need for reconstruction money is increasingly pressing. As this pressure increased, so too did the battle over who would lead Lebanon’s central bank since this figure will deeply affect Lebanon’s economic and banking agenda over the coming years.

The banks’ side, which supports Souaid, has been spearheaded by Antoun Sehnaoui, the chairman of the board of the SGBL Group.

Sehnaoui also funds Lebanese media outlets and is believed to be close to many politicians. He is widely believed to back the Soldiers of God (Jnoud el-Rab), a gang of men who quote Christian scripture and gained notoriety for targeting Lebanon’s LGBTQ community with violence.

In the run-up to the vote for central bank governor, media outlets Megaphone and Daraj reported that Sehnaoui had filed lawsuits against them.

The deeply rooted influence bankers like Sehnaoui have over the Lebanese system is largely why the state struggles to serve its citizens, critics say.

“It’s a mafia and [the bankers] are the oligarchs,” Fouad Debs, a lawyer and member of the Depositors Union, told Al Jazeera.

Debs said Souaid’s confirmation was a setback for a just solution to Lebanon’s economic crisis and it will deeply affect depositors and the state.

Riad Salameh, governor of Lebanon's central bank
Critics say Souaid will be another Riad Salameh, shown, who led the central bank for 30 years [File: Bloomberg]

“The appointment of Souaid is disastrous,” he said, adding that the state is likely to take on the tens of billions of dollars in debt instead of the banks.

Critics like Debs say, because many politicians are funded by bankers or are shareholders in banks themselves, they try to bring Lebanon’s economic policy in line with the banks’ interests even if it contradicts the public interest.

For years, the banks have benefitted from banking secrecy laws that reformists and the IMF say need to change.

Opponents to the new central bank governor will now push to try and come up with a recovery plan they feel is fair to depositors, but it will be an uphill battle after Souaid’s appointment.

“They are turning the country into a private company for maybe a few thousand individuals who will literally have control over most of the wealth in the country,” Debs said.

“It’s very dangerous and the country will change completely.”



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Russia and Ukraine agree to prisoner swap but peace talks stall in Istanbul | Child Rights News

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Russia and Ukraine have agreed to a new prisoner swap and the return of thousands of war dead during direct talks in Istanbul although little headway was made towards ending the war.

The delegations met on Monday at the Ottoman-era Ciragan Palace in the Turkish city, and officials confirmed that both sides will exchange prisoners of war and the remains of 6,000 soldiers killed in combat.

Negotiators from both sides confirmed they had reached a deal to swap all severely wounded soldiers as well as all captured fighters under the age of 25.

“We agreed to exchange all-for-all seriously wounded and seriously sick prisoners of war. The second category is young soldiers who are from 18 to 25 years old – all-for-all,” Ukraine’s lead negotiator and Defence Minister Rustem Umerov told reporters in Istanbul.

Russia’s lead negotiator, Vladimir Medinsky, said the swap would involve “at least 1,000” on each side – topping the 1,000-for-1,000 POW exchange agreed at talks last month.

Ukrainian President Volodymyr Zelenskyy, speaking from Vilnius, Lithuania, said the two parties “exchanged documents through the Turkish side” and Kyiv was preparing for the next group of captives to be released.

The Istanbul meeting marks the second direct dialogue in less than a month, but expectations were low. The talks on May 16 produced another major prisoner swap but failed to reach a ceasefire.

“The exchange of prisoners seems to be the diplomatic channel that actually works between Russia and Ukraine,” Al Jazeera correspondent Dmitry Medvedenko said, reporting from Istanbul.

“We’ve actually had exchanges of prisoners throughout this war, not in the numbers that have been happening as a result of these Istanbul talks,” Medvedenko added.

Zelenskyy’s chief of staff, Andriy Yermak, said Kyiv also handed over a list of children it accuses Russia of abducting and demanded their return.

As for a truce, Russia and Ukraine remain sharply divided.

“The Russian side continued to reject the motion of an unconditional ceasefire,” Ukrainian Deputy Foreign Minister Sergiy Kyslytsya told reporters after the talks.

Russia said it had offered a limited pause in fighting.

“We have proposed a specific ceasefire for two to three days in certain areas of the front line,” top negotiator Vladimir Medinsky said, adding this was needed to collect bodies of dead soldiers from the battlefield.

At the negotiating table, Russia presented a memorandum setting out the Kremlin’s terms for ending hostilities, the Ukrainian delegation said.

Umerov told reporters that Kyiv officials would need a week to review the document and decide on a response. Ukraine proposed further talks on a date between June 20 and June 30, he said.

After the talks, Russian state news agencies Tass and RIA Novosti published the text of the Russian memorandum, which suggested that Ukraine withdraw its forces from the four regions that Russia annexed in September 2022 but never fully captured as a condition for a ceasefire.

As an alternate way of reaching a truce, the memorandum presses Ukraine to halt its mobilisation efforts and freeze Western arms deliveries, conditions were suggested earlier by Russian President Vladimir Putin. The document also suggests that Ukraine stop any redeployment of forces and ban any military presence of third countries on its soil as conditions for halting hostilities.

The Russian document further proposes that Ukraine end martial law and hold elections, after which the two countries could sign a comprehensive peace treaty that would see Ukraine declare its neutral status, abandon its bid to join NATO, set limits on the size of its armed forces and recognize Russian as the country’s official language on par with Ukrainian.

Ukraine and the West have previously rejected all those demands from Moscow.

Ceasefire hopes remain elusive

Turkish President Recep Tayyip Erdogan called the talks “magnificent”.

“My greatest wish is to bring together Putin and Zelenskyy in Istanbul or Ankara and even add [United States President Donald] Trump along,” he said.

Turkish Foreign Minister Hakan Fidan, who chaired the talks, said the world was watching closely. He acknowledged the two sides had discussed the conditions for a ceasefire but no tangible outcome was announced.

Head of the Ukrainian delegation and Ukraine's Defence Minister Rustem Umerov (L) during a press conference after a second meeting of direct talks between Ukrainian and Russian delegations in Istanbul, on June 2, 2025. [Adem Altan/AFP]
Head of the Ukrainian delegation, Defence Minister Rustem Umerov, speaks after a second round of direct talks between Ukrainian and Russian officials on June 2, 2025 [Adem Altan/AFP]

Oleksiy Goncharenko, a Ukrainian member of parliament, told Al Jazeera he was not very optimistic about talks in Istanbul.

“Russia clearly shows that they don’t want to end the war because Ukraine proposed a 30-days ceasefire in March, and the American and Europe proposition was the same, but only one country [Russia] refused,” Goncharenko said.

Meanwhile, Ukraine has ramped up its military efforts far beyond the front lines, claiming responsibility for drone attacks on Sunday that it said damaged or destroyed more than 40 Russian warplanes. The operation targeted airbases in three distant regions – the Arctic, Siberia and the Far East – thousands of kilometres from Ukraine.

“This brilliant operation will go down in history,” Zelenskyy said, calling the raids a turning point in Ukraine’s struggle.

Ukrainian officials said the attacks crippled nearly a third of Russia’s strategic bomber fleet. Vasyl Maliuk, head of the Security Service of Ukraine, said the mission had taken more than a year to plan.

Zelenskyy said the setback for Russia’s military would increase pressure on Moscow to return to the negotiating table.

“Russia must feel the cost of its aggression. That is what will push it towards diplomacy,” he said during his visit to Lithuania, where he met leaders from NATO’s eastern flank and Nordic countries.

Ukraine’s air force, meanwhile, reported that Russia launched 472 drones on Sunday – the highest number since the start of its full-scale invasion in 2022 – aiming to exhaust Ukrainian air defences. Most of those drones targeted civilian areas, it said.

On Monday, Russian forces bombarded southern Ukraine’s Kherson region, killing three people and injuring 19, including two children. Separately, five people were killed and nine injured in attacks near Zaporizhzhia in the neighbouring Zaporizhia region.

Russia’s Ministry of Defence said its forces had intercepted 162 Ukrainian drones overnight across eight regions and Crimea while Ukraine said it shot down 52 out of 80 drones launched by Russia.

Zelenskyy warned that if the Istanbul talks fail to deliver results, more sanctions against Russia will be necessary. “If there’s no breakthrough, then new, strong sanctions must follow – urgently,” he said.



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In Gaza, aid kills | Israel-Palestine conflict

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Today, three Palestinians have been killed and 35 wounded by Israeli fire near an aid distribution centre in the Gaza Strip’s southern city of Rafah. The attack came a day after Israeli tanks opened fire on thousands of desperate and hungry Palestinians at the same site, killing at least 31 people. One person was also shot dead at another distribution site near the Netzarim Corridor in central Gaza the same day.

There are currently only four such sites distributing food to Gaza’s starving population of two million people, who for nearly three months were forced to contend with a full Israeli blockade that prevented the entry of all aid into the enclave.

On May 19, Israeli Prime Minister Benjamin Netanyahu magnanimously opted to allow a resumption of “minimal” aid deliveries to Gaza, having determined that impending mass starvation was a “red line” that might jeopardise the undying support of the US, Israel’s traditional partner in crime and the primary enabler of its slaughter.

And yet these mass killings suggest that the new “minimal” arrangement offers Palestinians a decidedly horrific choice: either die of starvation or die trying to obtain food – not, of course, that these are the only two options for dying in a genocidal war in which Israel has indiscriminately bombed hospitals, refugee camps and everything else that can be bombed, killing more than 54,400 people.

The aid distribution hubs are run by a sketchy new outfit called the Gaza Humanitarian Foundation (GHF), initially an Israeli brainchild that operates as a private aid organisation registered in both Switzerland and the US state of Delaware. As The Guardian newspaper noted, the GHF has “no experience distributing food in a famine zone”. It does, however, have ties to the US and Israeli governments and employs former US military and intelligence officers.

So it is that food distribution in Gaza now transpires under the supervision of armed US security contractors at hubs conveniently located near Israeli military positions. The four sites that are currently operational are located in central and southern Gaza while a significant part of the enclave’s population is in the north. To reach the hubs, many Palestinians must walk long distances and cross Israeli military lines, further endangering their lives.

No mechanism is in place to distribute food to elderly, sick or wounded Palestinians – not to mention starving people unable to engage in such physical exertion in the hopes of putting something in their stomachs.

Furthermore, the GHF initiative feeds into Israel’s forced displacement scheme whereby surviving Palestinians will be concentrated in the south in preparation for their eventual expulsion, as per US President Donald Trump’s plan for a reborn Gaza Strip largely devoid of Palestinians.

In other words, the GHF is not in Gaza to alleviate hunger or cater to the needs of its population; rather, the food distribution hubs are a lucrative PR stunt aimed at creating a “humanitarian” distraction from a continuing policy of deliberate starvation and genocide.

The United Nations and aid organisations have lambasted the weaponisation of humanitarian aid while the situation was apparently too much to handle even for Jake Wood, the former US marine sniper who served as the GHF’s executive director before his recent resignation on the grounds that “it is not possible to implement this plan while also strictly adhering to the humanitarian principles of humanity, neutrality, impartiality and independence”.

The massacres of the past two days are not the first such incidents to occur on the GHF’s watch. Since the launch of the initiative in late May, there have been numerous killings of Palestinians near distribution points. According to Gaza’s Government Media Office, the total number of people killed while seeking aid from this scheme has reached 52 so far.

And yet the slaughter of Palestinians in Gaza trying to engage in that most necessary human activity of eating is hardly new. Recall that on February 29, 2024, at least 112 desperate Palestinians were massacred while queueing for flour southwest of Gaza City. More than 750 were wounded.

After that particular episode, then-US President Joe Biden announced that the US would airdrop food into Gaza, another costly PR spectacle incapable of providing even a drop in the bucket in terms of the humanitarian needs of the population. A more straightforward and efficient move would obviously have been to pressure the Israelis to cease blocking aid trucks from entering Gaza by land – and for the US to, you know, cease bombarding Israel with billions of dollars in aid and weaponry.

As it turned out, airdrops can be lethal too, and just a week after Biden’s announcement, five Palestinians were killed when a parachute attached to an aid pallet failed to open. To be sure, there are few things more abominably ironic than hungry people being killed by food aid literally crashing onto their heads.

Call it humanitarian slaughter.

Then there was Biden’s $230m humanitarian aid pier, which shut down in July after a mere 25 days of service. It was heavily criticised by aid groups as another expensive, complex and ineffective means of getting food and other aid into Gaza. But then again, effectiveness was never the point.

Now, if the GHF’s Gaza debut is any indication, the militarised distribution of food will continue to provide opportunities for mass killing as crowds of starving Palestinians gather around aid hubs. The phrase “shooting fish in a barrel” comes to mind – as if the Gaza Strip weren’t enough of a barrel already.

To be sure, the idea of luring starving people to specific geographical points to facilitate Israel’s genocidal conquest is singularly diabolical. And as the US persists in enabling Israel’s fish-in-a-barrel approach, any remotely moral world would refuse to stomach the arrangement any longer.

The views expressed in this article are the author’s own and do not necessarily reflect Al Jazeera’s editorial stance.



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Iraq probes fish die-off in marshes | In Pictures News

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Iraqi authorities have opened an investigation into a mass die-off of fish in the country’s central and southern marshlands, the latest in a series of such incidents in recent years.

One possible cause for the devastation is a shortage of oxygen, triggered by low water flow, increased evaporation and rising temperatures driven by climate change, according to officials and environmental activists. Another is the use of chemicals by fishermen.

“We have received several citizens’ complaints,” said Jamal Abd Zeid, chief environmental officer for the Najaf governorate, which stretches from central to southern Iraq, adding that a technical inspection team had been set up.

He explained that the team would look into water shortages, electrical fishing, and the use by fishermen of “poisons”.

For at least five years, Iraq has endured successive droughts linked to climate change. Authorities further attribute the severe decline in river flow to the construction of dams by neighbouring Iran and Turkiye.

The destruction of Iraq’s natural environment adds another layer of suffering to a country that has already faced decades of war and political oppression.

“We need lab tests to determine the exact cause” of the fish die-off, said environmental activist Jassim al-Assadi, who suggested that agricultural pesticides could also be responsible.

Investigations into similar incidents have shown that the use of poison in fishing can lead to mass deaths.

“It is dangerous for public health, as well as for the food chain,” al-Assadi said. “Using poison today, then again in a month or two … It’s going to accumulate.”



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