BEIRUT, Nov. 18 (Xinhua) -- Wissam Fattouh, secretary general of the Union of Arab Banks, said that Arab banks will support Lebanon in different ways upon the formation of the new government, local media reported on Monday.
"Arab banks promised to stand by Lebanon and support the country by injecting cash in its banks and through other means when the new government gets formed," Fattouh was quoted as saying by Elnashra, an online independent newspaper.
Fattouh emphasized the need for the new government to restore the confidence of people in Lebanon before being capable of re-gaining trust of other countries.
The new government will be responsible for restoring the confidence in the country which has witnessed a drop in cash injections by Lebanese expatriates and the outflow of deposits from Lebanon in 2017 and the following years.
The shortage in liquidity prompted citizens to flock to banks to withdraw their money out of fear of losing their deposits since Lebanese banks hold most of the government's debt.
This has caused the banks' situation to worsen with many local economists calling upon citizens to limit their withdraws to their needs only to prevent the collapse of the banking sector.
