Central Bank of Lebanon asks banks to grant loans to people affected by Beirut explosion
Central Bank of Lebanon called on banks and financial institutions to provide exceptional zero-interest dollar loans to individuals and businesses affected by the catastrophic explosion in the Port of Beirut on Tuesday.
Lebanon was devastated by the tragic explosion that erupted in the Beirut port area, killing at least 135 people and injuring thousands. The damage is estimated at billions of dollars. Beirut Governor Marwan Abboud has reportedly said the capital’s repair bill alone will cost up to $ 5 billion.
Exceptional loans must be made regardless of accounts receivable limits, do not bear interest and must be repaid over five years. The loans can be repaid in Lebanese pounds based on the interbank rate of 1,515 pounds to the dollar, Reuters reported.
The country’s economy minister, Raoul Nehme, said that without foreign aid, the state and the central bank have very limited capacity to cope with the impact of the port warehouse explosion that pulverized Beirut.
According to Nehme, working with the IMF was the only way out for Lebanon, which is in debt up to its neck and already struggling with a dollar crisis even before Tuesday’s explosion.
Lebanon has suspended a $ 1.2 billion Eurobond payment and is seeking talks with its creditors to restructure all of its $ 90 billion debt.
Discussions with the IMF are now at a standstill due to a disagreement between the government, banks and lawmakers over the extent of the financial losses.
(Written by Seban Scaria [email protected]; edited by Daniel Luiz)
#Lebanon #Economy #Central Bank # Loans #Beyrouth #Finance
Disclaimer: This article is provided for informational purposes only. The Content does not provide any tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer here.
© ZAWYA 2020