Saradar Bank buys half of Vitas microfinance company. Saradar aims to gain a foothold in the microfinance market

Saradar Bank said it has acquired a 49 percent stake in microfinance company Vitas SAL, a local subsidiary of the US-based Vitas Group. The transaction was valued at around $3.7 million according to a source linked to the transaction. Both Saradar and Vitas refused to confirm this figure.

In a statement, the bank said that the move will allow it to gain a foothold in the promising local microfinance market.

Vitas SAL, which launched its operations 17 years ago, has so far issued o...

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Moneylenders to get same training as bankers. Central Bank circular regulating further ‘Comptoirs de crédit’

The Central Bank (BDL) has issued a new regulation requiring certain executives in moneylending businesses to have qualifications similar to those required by people holding comparable jobs in banks and financial institutions. The prerequisites pertain to academic, technical, and ethical qualifications in specific regulated positions.

The moneylending businesses, identified by BDL as 'specialized lending entities', are known locally as 'comptoirs de crédit'. They provide small loan...

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BDL to raise ceiling for industrial export soft loans. Conditions to ease in a bid to benefit SMEs

The Central Bank (BDL) will raise the ceiling of soft loans provided by banks to finance the working capital of industrial exporters to $3 million from $2 million, according to Wael Hamdan, Director of BDL's Financing Unit.

The decision is an amendment to a BDL ruling addressed to the banks last May through intermediate Circular 462.

Manufacturing companies that export at least 25 percent of their output will be eligible for the soft loans instead of the current 50 percent.

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Banks get to open more branches per year. BDL Circular aims to expand financial inclusion

The Central Bank (BDL) will allow banks to increase the number of branches to three per year, up from two currently, provided that at least one of the new branches uses modern technology, according to BDL's intermediate circular 467.

BDL said it may even allow a bank to exceed the three-branch-a-year ceiling if it finds a good reason for that, especially if the bank plans to open branches outside big cities.

The Central Bank has also issued another intermediate circular, numbered 4...

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EIB offers $303 million in credit lines to four banks. Funds target SMEs and mid-cap companies

The European Investment Bank (EIB) has granted credit lines to four local banks with a combined value of 265 million euros ($303 million). The funds will be used to finance small and medium enterprises (SMEs) and mid-cap companies.

The beneficiaries are Byblos Bank, which was granted a credit line equivalent to $114 million, Fransabank with a credit line of $86 million, and Société Générale de Banque au Liban (SGBL) and First National Bank (FNB) with $69 millio...

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