The Banking Executive Magazine - January 2023 Issue

Speech of Dr. Jospeh Torbey SPEECH OF DR. JOSEPH TORBEY DURING THE “BEIRUT ECONOMIC FORUM 2022” As the Chairman of the World Union of Arab Bankers (WUAB) and Chair- man of the Executive Committee at the Union of Arab Banks (UAB), I warmly welcome you all to this meeting organized by UAB. I espe- cially extend my greetings to our Arab brothers who have gathered here today, as experts, speakers, and attendees. This forum will delve into the pressing issues in some Arab countries, particularly economic re- forms and the role of the Interna- tional Monetary Fund as a key factor for their success. I would like to extend my gratitude, particularly to the Lebanese Prime Minister and President of the Council of Ministers, H.E. Mr. Najib Mikati, for sponsoring this forum and taking meticulous responsibility in this chal- lenging time as Lebanon embarks on a recovery journey, working with in- ternational references such as the In- ternational Monetary Fund, the Lebanese parliamentary and eco- nomic stakeholders, civil society groups and multiple pressure groups and initiatives. My gratitude is also extended to the experts who will share their experi- ences and insights from their respec- tive countries during these days where the global economic crisis is affecting most of the world. The In- ternational Monetary Fund plays a pivotal role in support. In fact, the IMF contributed to mitigating the im- pacts of the global economic crisis in fiscal year 2022 by providing loans to struggling economies, including: Approval of loans exceeding 219 bil- lion dollars to 92 countries. The IMF loan, along with the histor- ical distribution of Special Drawing Rights (SDR) valued at 650 billion dollars, provided liquidity to coun- tries facing a shortage of funds after the COVID-19 pandemic. Special Drawing Rights were distrib- uted to all member countries, includ- ing 275 billion dollars from the allocation of rising and declining economies. These figures demonstrate the impor- tance of the Fund in the world econ- omy, ensuring countries' economic stability and providing technical guidance to aid their access to other financial institutions and markets while implementing reforms. In the Arab world, several Arab countries are negotiating with the In- ternational Monetary Fund to adopt economic reforms and obtain favor- able loans to overcome financial dif- ficulties and increase trust with the Fund. These countries include Egypt, Tunisia, Jordan, Sudan, and Lebanon. They are facing deep economic crises and require urgent financing along with monetary, fiscal, and tax reforms, restructuring of the public sector, and controlling inflation. The effects of the COVID-19 pandemic and the Russian-Ukrainian war have exacerbated the crisis in these Arab countries, making it more pressing to implement programs with the IMF. Currently, Lebanon is at the forefront of countries seeking to implement an IMF funding program along with economic reforms. In reality, negotiating with the Inter- national Monetary Fund wasn't easy, and now it will become more diffi- cult due to Lebanon's presidential void and the constitutional conflict over the continuation of the parlia- mentary council in legislation as it transitions into an electoral body lim- ited to electing a republic president to complete the transfer of constitu- tional powers. Additionally, the is- sues being proposed by the parliamentary council for legislation, including untried measures such as freezing deposits, reducing bank in- terest rates, restricting interest move- ments, and conducting a tax system the BANKING EXECUTIVE 16 ISSUE 169 JANUARY 2023