A stable currency is necessary for the success of Lebanon's planned privatization of state-owned companies, Central Bank Governor Riad Salameh said in remarks published last week.
"Without a stable currency, it is impossible to lower interests which helps reactivate the economy and privatization," Salameh told An-Nahar daily.
Last week, an International Monetary Fund draft report said Lebanon's economy will grow by 1.3 percent in 2001, snapping a two-year streak of zero or negative economic growth.
The report backed the government's strategy for a return to economic health by developing the private sector and privatizing state companies, which is expected to raise $2.7 billion.
"The International Monetary Fund did not ask Lebanon, in any of the meetings, to change its monetary policy, neither for the exchange rate of the pound nor for the interests, but it called for financial reforms to back financial and monetary stability," Salameh said.
Salameh explained that without a sound currency, Lebanon would fail like other countries "to attract investments needed for the success of the privatization operation."
The government plans to sell off a number of businesses, including the Electricite du Liban, the state-owned water company and Middle East Airlines. — (AFP)
© Agence France Presse
© 2001 Mena Report (www.menareport.com)
