Central Bank blocks sale of Banque Pharaon and Chiha

The Central Bank (BDL) took a negative position towards selling part of the shares of Banque Pharaon and Chiha to the ZR Group Holding, owned by the Rahme family.

“We did not receive an official request for the approval of this deal, but Banque Pharaon and Chiha recently asked our opinion,” Central Bank Governor Riad Salameh said. “We will object to the selling of the bank’s shares to ZR Group Holding,” said Governor Riad Salameh.

“The Rahmeh family is reputable, but the banking sector has high professional needs and its management should be in the hands of highly skilled bankers to launch a small bank again,” Salameh said. He said that BDL favors mergers between banks.

Banque Pharaon and Chiha signed a sale contract for 80 percent of its shares in October 2014 to Raymond and Teddy Rahme of the ZR Group Holding, a Beirut-based multinational company.

The deal was still subject to approval by BDL, which usually takes two months from the date of signing of the agreement.