Elected as banker of the year by EUROMONEY magazine, Riad Salame, govenor of the central bank, has been a guarantor for the authenticity of Lebanon’s monetary policy of safeguarding currency stability and relying on market forces. EXECUTIVE asked Mr. Salame about the state of the banking and financial sectors at the end of the year, the impact of the Al Madina scandal, and his outlook for 2004. E: How do you evaluate the period in terms of fulfilling the commitment and promises of Paris II, one year post the event? RS: Paris II recreated confidence in the financial markets. Interest rates saw an important decline. In 2003, interest rates are 50% to 60 % lower than in the previous year. The confidence and positive dynamic allowed Lebanon to issue debt instruments in the local currency with three-year duration. That was the first time it was possible to do this and
