Large Shareholders Of Fransabank, Bank Al-Sharq and Byblos Bank hit by EU Syria Sanctions

This can’t be good:

Shock waves rippled through the Syrian Business Community this morning as people awoke to the news that four of the country’s most prominent capitalists have been added to the EU sanction list. Their homes, investments, and bank accounts are now being frozen in Europe. The US can not be far behind.

Two of them, Messrs. Fares Chehabi and Issam Anbouba are large shareholders in Fransabank, Bank Al-Sharq (owned by libano-française Group) and Byblos Bank.

Of course this does not mean that the banks themselves are in danger. But large shareholders usually get privileged access to liquidity and credit from their banks. They may also have the ability to move their money freely between Lebanon and Syria. These kinds of illicit entanglements can’t survive the scrutiny of EU sanctions.

It is too early to tell how much this will affect the Lebanese banking sector, which according to Moody’s is quite exposed to Syria. Governor Salameh has his work cut out for him..