Central Bank’s gold reserves jump 26 percent in 12 months. Improvement driven by surge in global prices

The value of the gold reserves held by the Central Bank (BDL) surged 26 percent to $13.9 billion by mid-August 2019 compared with a year earlier driven by a sharp rise in global gold prices, according to BDL data.



The spot price of an ounce of gold jumped to $1,520.40 on August 15, from $1,178.3 a year earlier, according to the London Metal Exchange. The ...

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Deposits are secure at Jammal Trust Bank. Liquidity is available to meet the needs of legitimate accounts

All lawful deposits with Jammal Trust Bank (JTB) remain secure until their maturity date and liquidity is available to meet the needs of the bank's legitimate depositors, said Riad Salameh, Governor of the Central Bank (BDL).

Salameh's statement came following an announcement by the U.S. Department of the Treasury that its Office of Foreign Assets Control (OFAC) has sanctioned JTB, alleging that it knowingly facilitated banking activities for Hezbollah.

JTB said: "In the days to co...

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Central Bank’s reserves up $1.4 billion in two weeks. Growth comes from non-resident private sector depositors

The foreign exchange reserves of the Central Bank (BDL), excluding gold, increased by nearly $1.4 billion during the second half of August to reach $38.7 billion at the end of the month, according to Riad Salameh, Governor of BDL.

This increase is due to the influx of deposits from the non-resident private sector directly to BDL and not the result of deposits by any foreign state or any international entity, he said.

This reflects depositor confidence, strengthens the stability of ...

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Visa offers fintechs easier services at lower cost. Deal with Beirut Digital District to boost fintech know-how

Visa Inc. will offer new financial technology companies (fintechs) the opportunity to benefit from its payment services in an easier and simple manner and at reduced cost, said Nabil Tabbara, General Manager for Levant at Visa.

Visa, an international provider of digital payment services, will provide these benefits through its Fintech Fast-Track Program which it recently launched on the local market.

The program is in line with a global trend to simplify and provide easier custome...

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Arab Fund to lend $165 million to Housing Bank. Proceeds are adequate to lend to over 1,000 borrowers

Banque de l'Habitat (The Housing Bank) has secured a 30-year soft loan of KD50 million ($165 million) from the Arab Fund for Economic and Social Development, said Joseph Sassine, Chairman of The Housing Bank.

A preliminary agreement has been signed between the Arab Fund and the Council for Development and Reconstruction (CDR) for this purpose. The Cabinet is expected to issue the related decree in its next session.

The Housing Bank will pay an interest rate of 2.5 percent on th...

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Gross market debt in downtrend since 2013. Dwindling share mitigates country’s default risk

The share of the gross market debt of the total public debt dropped ten percentage points over the period 2013/2018 and reached 59 percent at the end of last year, driven by the State's growing indebtedness to the Central Bank (BDL), according to the Ministry of Finance's 'Debt and Debt Markets' report for the fourth quarter of 2018.

Gross market debt is the portion of public debt that is held by banks and other private sector lenders. It is computed by deducting from the gross public deb...

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Banque Libano-Française Digital Banking Experience. Sponsored Content

For immediate release - Beirut, January 15, 2019. Banque Libano-Française (BLF) has implemented a new e-branch concept in Mar Mikhael, aiming at offering an optimized digital banking experience to its clients and the visitors of this area. Customers will be able to withdraw, deposit cash and checks, and benefit from many other innovative services, through two ATMs. They will also have the possibility to access in a simple, confidential and secured way, their accounts through BLF e-banking...

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Expat businessmen launch $100 million investment fund. To support infrastructure projects

The Federation of Global Lebanese Investors has launched a $100 million investment fund to support infrastructure projects in the country.

The fund will invest in the infrastructure Public-Private Partnership (PPP) projects that were included in the government's CEDRE plan. Some 92 expatriate Lebanese businessmen have subscribed to the fund.

PPP projects are valued at $6 billion, according to the High Council for Privatization.

"The World Bank, the European Investment Bank...

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Calls to establish funds for reconstruction, digital tech. $100 million pledged by Kuwait and Qatar

The Arab Economic and Social Development Summit asked Arab countries to support the creation of a fund with a capital of $200 million to invest in technology and the digital economy.

Kuwait, which is the initiator of the fund project, will contribute $50 million to its capital. The Qatari government will contribute another $50 million. The private sector will also be able to participate in the capital of the fund.

The new initiative will be managed by the Arab Fund for Economic and...

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Qatar to buy $500 million in Eurobonds. Doha says it is committed to support Lebanon

Qatar will purchase Lebanese government bonds denominated in the U.S. dollar worth $500 million, said Qatari Deputy Prime Minister and Minister of Foreign Affairs Mohammed bin Abdulrahman Al Thani.

"We are committed to support the Lebanese economy and people in light of great challenges," Al Thani said.

Earlier this month, the country's dollar-denominated bonds (Eurobonds) witnessed a heavy sell-off and their prices plunged following a controversial statement by Caretaker Minister...

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Fransabank ups stake in BL to 82 percent. Sehnaoui and other investors exit BLC Bank

Fransabank has increased its ownership in BLC Bank to 81.87 percent by acquiring a combined stake of 13.3 percent from a group of shareholders, according to a statement from BLC Bank.

The sellers are banker Maurice Sehnaoui and his company, Holding M. Sehnaoui, as well as Walid Ziade, Youmna Ziade, and Silver Capital Holding (Ziade family).

Part of the stake, amounting to 8.83 percent, was acquired for a total of $45.8 million. It consisted of 18.86 million listed common shares b...

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Inbound E-money transfers must be paid in lira only. Central Bank decision applies to firms like OMT, MoneyGram, and Western Union

Electronic money transfers from abroad will be settled exclusively in lira from now on, according to an intermediate circular by the Central Bank (BDL). The circular does not restrict domestic transfers.

The decision targets companies engaged in electronic cash transfers such as OMT, MoneyGram, and Western Union, said Riad Salameh, Governor of BDL. The circular does not apply to bank transfers.

Salameh said that BDL's move is in line with international practices and aims to combat ...

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Inbound E-money transfers must be paid in lira only. Central Bank decision applies to firms like OMT, MoneyGram, and Western Union

Electronic money transfers from abroad will be settled exclusively in lira from now on, according to an intermediate circular by the Central Bank (BDL). The circular does not restrict domestic transfers.

The decision targets companies engaged in electronic cash transfers such as OMT, MoneyGram, and Western Union, said Riad Salameh, Governor of BDL. The circular does not apply to bank transfers.

Salameh said that BDL's move is in line with international practices and aims to combat ...

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Rahmeh brothers to invest in Bankmed. Total contribution to be below ten percent of the bank

Investors Teddy and Raymond Rahmeh are planning to buy shares in Bankmed.

"We were informed of the matter and we do not object it," said Riad Salameh, Governor of the Central Bank.

Negotiations are ongoing and the final number of shares is still being negotiated, according to Bankmed and representatives of the Rahmeh brothers.

The number of shares will not exceed five percent for each of the two shareholders. "This percentage does not require our consent," Salameh said i...

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$20 million EBRD loans to BUTEC for smart metering. First corporate loan by European Bank

The European Bank for Reconstruction and Development (EBRD) will grant BUTEC Utility Services (BUS) a $20 million loan for the implementation for the installation of smart electricity meters.

BUS is one of three distribution service providers in charge of providing operations, maintenance, and bill collection services to public electricity subscribers. BUS handles these operations in the North.

"This is the first corporate loan granted by the EBRD in the local market," said Fadi Ab...

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UPDATE: Lebanon’s outlook downgraded by Moody's. Cites rising risks to liquidity position and financial stability

Moody's Investors Service said it has changed the outlook on the Lebanese government to negative from stable and that it affirmed the ratings at B3.

"The negative outlook reflects an increase in risks to the government's liquidity position and the country's financial stability, in large part as a consequence of domestic and geopolitical risks that have become more intractable," the credit rating agency said in a statement.

Moody's said it would change the outlook to...

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Bank Audi to provide $200M for green energy projects. Audi secures $90 million from European Bank and $10 million from TaiwanICDF

Bank Audi said it will offer $200 million in financing for green energy projects. Ventures to be funded include projects that aim to reduce greenhouse gas emissions and improve energy efficiency.

Financing will be funded by a $90 million loan obtained from the European Bank for Reconstruction and Development (EBRD) and a concessional facility worth $10 million from the International Cooperation and Development Fund (TaiwanICDF). The remaining $100 million will be financed from Bank Audi'...

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Average maturity of deposits nearly quadruples in one year. Longer tenure reduces risks of bank runs

The average maturity of deposits has increased to 5.7 months, up from just 45 days before the resignation of Prime Minister Saad Hariri in November 2017. The average maturity had been stable at around 45 days for 20 years.

"The average maturity of deposits is still rising and the fact that depositors are engaging in longer maturities is a signal of confidence. A longer maturity also enables us to face any emerging crisis," said a source at the Central Bank. More than two-thirds of total d...

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US sanctions against Iran will not affect local banks. Lenders are already in full compliance

Local banks will not be affected if SWIFT complies with U.S. sanctions against Iran, which have been put into effect.

SWIFT, the Society for Worldwide Interbank Financial Telecommunication, provides financial messaging services, such as money transfer instructions, between banks across the world.

Makram Sader, Secretary General of the Association of Banks, said that Lebanese banks don't have any correspondent relationships with Iranian banks. Local banks stopped de facto dealings e...

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$66.3 million interest subsid for housing loans for one yea. Loans granted via the Public Corporation for Housing

Parliament has approved the allocation of LL100 billion ($66.3 million) to subsidize the interest rates of housing loans for one year.

The loans eligible for the subsidies are those that are provided through the state-owned Public Corporation for Housing (PCH) and that target low and middle-income people. Borrowers can expect to pay around 3.74 percent interest. PCH loans have a ceiling of $180,000.

The value of the subsidy corresponds to loans worth some LL1,000 billion ($663 mill...

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