The Banking Executive Magazine - November 2024

Interview HOW DO YOU EVALUATE BANQUE DE L’HABITAT’S ROLE IN FULFILLING ITS COMMITMENTS DESPITE ECONOMIC CHALLENGES? Banque de l’Habitat has always been a model of commitment, staying true to the principle that “a promise is a debt of honor.” Since I were elected in 2022 to lead this institution, I have maintained a strategic goal of facili- tating access to decent housing for families with low and middle in- comes. Despite the economic diffi- culties, we explored various funding sources, both local and international, in collaboration with Arab, Euro- pean, and international organiza- tions. Although initial efforts faced skepti- cism, we tackled challenges with de- termination and resilience. Banque de l’Habitat not only honored its commitments but also successfully dispelled doubts, solidifying its posi- tion as a reliable institution capable of overcoming crises. The bank has proven that challenges can be trans- formed into opportunities for growth and development, reinforcing its credibility and flexibility in effec- tively supporting the Lebanese com- munity. CAN YOU SHARE THE DETAILS OF BANQUE DE L’HABITAT’S COLLABORATION WITH THE ARAB FUND FOR ECONOMIC AND SOCIAL DEVELOPMENT? In 2023, at the invitation of Engineer Nabil Al-Jisr, Chairman of the Coun- cil for Development and Reconstruc- tion (CDR), we participated in a meeting with a delegation from the Arab Fund for Economic and Social Development at the council's head- quarters. During this meeting, we presented a comprehensive report on the financial and administrative sta- tus of Banque de l’Habitat and re- newed our request to reactivate a loan granted in 2019, which remains pending. This meeting was characterized by transparency and positivity, allowing us to emphasize our strict adherence to financial management standards and reaffirm that Banque de l’Habitat has always honored its financial ob- ligations to Arab funds and other in- stitutions. The Arab Fund delegation also evaluated the bank's assets, not- ing that all our branches across Lebanon are fully owned, which is a strategic advantage that strengthens the bank’s stability and sustainability. It is important to acknowledge the vi- sionary leadership of former General Manager Mr. Joseph Sassine, who spearheaded the acquisition of all bank branches. This achievement fa- cilitated a thorough financial due diligence process, which confirmed the bank’s robust financial standing. Under Mr. Sassine's leadership, suc- cessive boards meticulously fulfilled all financial obligations, including the repayment of borrowed capital and interest owed to donors. This fi- nancial discipline was pivotal in se- curing the Arab Fund loan in 2019. Today, the current administration re- mains committed to the same pru- dent approach, guided by strong governance policies that ensure sta- bility and sustainable growth for the bank. WHAT WERE THE OUTCOMES OF THE OFFICIAL MISSION TO KUWAIT AND YOUR MEETING WITH THE ARAB FUND FOR ECONOMIC AND SOCIAL DEVELOPMENT? During an official mission to Kuwait, we met with representatives of the Arab Fund for Economic and Social Development. The primary objective of the meeting was to finalize the dis- bursement of the second installment of the loan, valued at USD 16.3 mil- lion, aimed at supporting families with low and middle incomes. The Arab Fund confirmed that the install- ment would be transferred to our ac- count upon receiving the official request, which was completed by the end of November 2024. Adapting to the current economic conditions, the loan currency was converted from Lebanese Lira to US Dollars and will be disbursed over ten equal installments within five years, at an interest rate of 6%. This funding is a cornerstone of financial stability and allows Banque de l’Habitat to continue supporting Lebanese citizens seeking to own homes, reaffirming the bank’s ability to uphold its mission even amidst crises. HOW HAS THE NEW ELECTRONIC PLATFORM SIMPLIFIED AND STREAMLINED THE LOAN APPLICATION PROCESS? We launched an innovative elec- tronic platform designed to simplify administrative procedures and make the loan application process more accessible for borrowers. Through this platform, Lebanese citizens, re- gardless of location, can submit their applications online with ease, re- ceive immediate feedback on eligi- bility, and finalize procedures at the nearest bank branch. This initiative reflects our commitment to offering more efficient and transparent serv- ices that align with the evolving needs of our clients. ARE THE CURRENT FINANCIAL RESOURCES SUFFICIENT TO MEET CITIZENS’ NEEDS? While current funding sources are limited, they are primarily allocated to support the purchase, construc- tion, or renovation of housing in rural areas outside the capital, Beirut. This support aims to reduce rural-to- urban migration and encourage Lebanese citizens to remain in their hometowns, in line with the vision of late Presidents Salim Al-Hoss and Elias Sarkis, who established Banque de l’Habitat in 1977. Their vision sought to preserve Lebanon’s social fabric and promote local stability. However, the available funds, total- ing USD 165 million, are insufficient to meet the growing demand. To bridge this gap, we requested addi- tional financing from international institutions, such as the Abu Dhabi ISSUE 190 NOVEMBER 2024 the BANKING EXECUTIVE 35