Lebanon's Economic Crossroads: New Central Bank Governor Appointed Amid Crisis

Karim Souaid has been appointed as Lebanon's new central bank governor. The appointment comes as the country battles a deep economic crisis exacerbated by war and decades of mismanagement. Critics fear Souaid might align with banks' interests and sell state assets. Lebanon urgently needs reforms to secure international aid.

Lebanon named asset manager Karim Souaid as its new central bank governor on Thursday, amidst a push for economic reforms following years of turmoil and corruption. Prime Minister Nawaf Salam announced the appointment, though he expressed reservations, noting that Souaid's backing came from more than two-thirds of the reformist Cabinet.

The appointment comes at a critical juncture for Lebanon, a nation grappling with a protracted economic crisis worsened by Israel's lengthy conflict with Hezbollah, resulting in significant damages. The World Bank estimates losses at $11 billion, further straining Lebanon's prospects for international aid.

Souaid, formerly of HSBC, is viewed with skepticism by some for his perceived alignment with banking interests. Concerns linger about possible asset sales to aid banks. Lebanon faces pressure from the International Monetary Fund to undertake substantial reforms, including tackling corruption and restructuring the banking sector.

(With inputs from agencies.)