Speaking at the opening of the Mediterranean Investment Forum at the Phoenicia Intercontinental Hotel, an event organized by Al-Iktisad Wal-Aaamal magazine, Salameh highlighted the benefits of such a bank in the region.

Citing some statistics, the governor stressed that over 450 million people live in the Mediterranean countries, with a combined GDP of $800 billion and the annual funds transfers of these countries averaging $71 billion a year.

"These figures, despite their significance, are not sufficient to develop business between these countries because of the disparity in the distribution of this wealth. The European part of the Mediterranean controls 80 percent of the GDP while 62 percent of the total population is based in the eastern and African parts of the Mediterranean and they only control 20 percent of the GDP," Salameh said in his speech.

He added that the transfer of funds is not in the favor of the non-European countries in the Mediterranean region.

"The non-European countries in the Mediterranean only enjoy 25 percent of the total transfers of funds each year."

For these reasons, Salameh voiced support for the creation of a bank covering all the Mediterranean countries.

"If we wanted this bank to succeed then we should work according to specific criteria and to be protected against political implications because these current upheavals are big, deep and historical," Salameh said.

According to Salameh, this bank must be the main engine to activate trade and investments and offer incentives to remove trade and red-tape barriers among Mediterranean states.

He added that the recent financial crisis has had a negative impact on the Mediterranean countries in general.

The International Monetary Fund projects a GDP growth of 3 percent for the non-European states of the Mediterranean, while the growth in the European countries will only be close to 2 percent in 2009.

After commenting on the fall in the prices of raw materials and a retreat in tourism in the Mediterranean states in general, Salameh said the proposed bank would activate the market, provided that it receives adequate cash.

The president of the Mediterranean Business Federation Jacque Sarraf underlined the need to hold socio-economic summit that would tackle unemployment in the region.

"I hope President Michel Sleiman, who managed to bring all the Lebanese parties to one table, will take the initiative and call for a socio-economic round table between the Mediterranean countries," Sarraf said.

He added that the objective of this forum was to address the issues of transparency, good governance, preparing the youth to learn new skills in the markets and activating the culture of production in the societies.

Ernest-Antoine Seilliere, president of Business Europe, said the EU has played part in the establishment of stability in the markets amid the current financial crisis.

"Business Europe sees the Mediterranean states as natural partners. In 2007, commercial trade among the Mediterranean countries reached 127 billion euros, or 5 percent of the total trade of the EU," Seilliere said.

He reiterated the call of French president for the creation of a Mediterranean market, adding that this step would increase mutual investments among these countries.

Other speakers at the forum touched on banking and financial issues and means to promote trade and banking relations among Mediterranean states.

Over 500 businessmen and bankers from Europe and the Middle East took part in this event. -Daily Star