BEIRUT: Lebanon's economy should be able to survive the political turmoil that has seen the appointment of a Hezbollah-backed premier due to the strength of the country's banking system and replete foreign currency reserves, analysts say. "The financial defense lines are currently the strongest in Lebanon's history," said Marwan Barakat, chief economist at Bank Audi, one of the leading banks in the country. "The Central Bank has $30 billion (22.5 billion euros) in foreign currency reserves which cover 78 percent of depositors in Lebanese pounds," he added. "Even if these 78 percent convert their money into dollars, we're covered." The collapse of the Western-backed government of Saad Hariri on Jan. 12, following a long-running standoff with the Iran- and Syrian-backed militant Hezbollah, initially rattled some Lebanese who rushed to convert their savings into dollars or transferred money out of the country. But the profile of the man picked to succeed Hariri - billionaire businessman Najib Mikati, who is close to both Saudi Arabia and Syria - seems to have had a reassuring effect on economic circles, at least for now. "The political equation today is not very worrisome for the economy," said a Swiss banker who works in Lebanon and other countries in the Middle East. "And Mikati's nomination is reassuring to economic circles because he is one of them," he added, requesting anonymity. The 55-year-old magnate owns the M1 Group, an international investment holding group with shares in South Africa's telecom MTN Group and French fashion line Faconnable, and has interests in real estate, oil, gas and other industries. Forbes magazine in 2010 estimated Mikati's net worth at $2.5 billion, making him one of Lebanon's richest men. He ties for rank 374 on the Forbes list of billionaires with his brother and business partner Taha. – Agence France
