A new law. Could be good medicine?
Today, a new capital market law in Lebanon aims to stimulate the investment in financial instruments, which are long-handled shy. The activation of the capital market, however, still awaits the appointment of three members by the Lebanese government,
as said Central Bank Governor Riad Salame in a luncheon held in his honor by the Financial Market Association at the Phoenicia hotel.
The newly approved law calls for the establishment of an independent regulatory body, headed by the Central Bank Governor and composed of seven members, five of them are from the private sector.
"Commercial banks would not be listed on the new capital markets in Lebanon, in order to separate between these banks and investment banks and not to offer depositors' funds for speculation, as Governor Riad Salame explained. He also suggested exempting international companies and funds- which plan to be listed from taxes, looking forward to create one or more private bourses in Lebanon.
The long-awaited capital market law which has been sitting on Parliament’s shelf for the past five years, was approved by the Lebanese parliament on August 4, 2011.
The law requires the Beirut Stock Exchange (BSE) to be privatized. The BSE which is a public institution, was ruled by the provisions of the BSE by law, stipulated in the legislative decree number 120, dated September 16, 1983. With a market capitalization of $11 billion, BSE remains one of the smallest in the Middle East.
It’s important to note that the internal political bickering and regional turbulence have left adverse repercussions on the BSE’s activity this year. In a market that still lacks liquidity and efficiency, the total trading volume reached 64.2 million shares in the first nine months of 2011, constituting a decrease of 54.2 percent from the same period last year.
As such a reform would improve the capital market outlook, experts hope the new law would activate Lebanon’ s ailing bourse and attract further investments.
STRATEGIES & PLANS
A fundraising event, entitled Think Green, will be held by Zero Waste ACT for all its business members on September, 10,2013, at WHITE, Dora.
The Green Mind Association invited all Green Mind Award Participants, finalists, runner ups and winners to the GREEN MIND DAY on Jan-16-2013 in Beirut, to create a platform where interested Venture Capital and Potential Investors met with participants.
A green initiative launched by Ashrafieh 2020 project aims to transform Ashrafieh into a tranquil and unpolluted area.Green spaces allow residents to walk and ride bicycles.