Moody’s downgrades rating to B3, upgrades outlook to stable.

The credit rating agency Moody's has downgraded the Sovereign long-term issuer ratings to B3 from B2. The agency also changed the outlook from negative to stable.

Moody's said that the principal driver for the ratings downgrade to B3 from B2 was the rise in the debt burden. According to the rating agency's estimates, public debt is likely to reach nearly 140 percent of GDP in 2018.

"The ongoing erosion of Lebanon's very weak government finances will continue to constrai...

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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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Spread narrows between lira and dollar lending rates. Demand expected to rise for loans in local currency

The spread between the Beirut Reference Rate (BRR) on lending in lira and the BRR on lending in the U.S. dollar has narrowed by 27 percent since January 2016.

The spread is currently at 1.87 percent, as per the rates set by the Association of Banks (ABL) for September 2017.

The margin between the two rates has been slowly decreasing over the period due to the moderate rise in the BRR on lending in dollars. The BRR for lending in liras was fairly stable during the period. The incre...

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Gender gap narrows with age according to ILO survey. Informal employment dominates in all sectors

The gender gap in employment is sizeable in the bracket of 15 to 29 years old, according to the International Labour Organization (ILO) report 'Rising to the Youth Employment Challenge: New Evidence on Key Policy Issues', published earlier this month which covered the youth.

Unemployment rate for males was 6.2 percent and for females 10.5 percent.

The service sector employs 81 percent of males. Industry accounts for 16.5 percent, and agriculture 2.5 percent. Female employment is 9...

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Working hours extended for public sector employees. Saturdays are off from now on

The Ministry of Labor has issued today (Aug 22) a circular which amends the working hours from 32 to 35 hours per week. The decision is effective tomorrow.

Parliament approved extending the working hours of public employees for an additional three hours per week. This is part of the 38 articles forming the salary scale law for civil servants and public employees, which will be published in the Official Gazette this week.

George Aida, General Director of the Ministry of Labor, sai...

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President Aoun signs salary scale and tax laws. Employees will receive their first raise pay in September

President Michel Aoun has signed the salary scale law that aims to increase the wages of public sector employees. He has also signed a tax hike law to finance the pay rise.

The two laws will be published in a special issue of the Official Gazette and will thus be put into effect.

Last July, Parliament approved 38 articles pertaining to the salary scale which includes raising the minimum monthly salary of public servants to $450 making it equal to that of private sector employees. ...

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Tender for power barges terminated. To amend the terms of reference and launch new tender

The Cabinet has terminated the tender for two additional power barges with a capacity of 425 megawatts.

The Department of Tenders will launch the tender again, after receiving the amended terms of reference from the Ministry of Energy and Water.

Jean Ellieh, Director General at the Department said: "Only one bidder, Karadeniz, applied for the tender. By law, there should be at least two competing companies."

Karadeniz, a Turkish firm, is currently providing electricity ...

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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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Public Private Partnership has finally become law. Sectors covered include electricity production, public transport, and trash management

Parliament ratified the Public Private Partnership (PPP) law.

All partnership projects that would be prepared by the government, public administrations, and by municipalities and union of municipalities, are governed by this law.

Mohamed Choucair, Chairman of the Chamber of Commerce, Industry, and Agriculture in Beirut and Mount Lebanon, said: "This law will reactivate investments, and will create a good economic activity."

Choucair said that there is liquidity in the bank...

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Keserwan and Jbeil Merged into a mohafazah. Public administrations to move to Jounieh

A new Mohafazah for Keserwan-Jbeil has been declared by Parliament.

Public administration offices, ministry representative offices, courts, and the land registry and cadaster will open in Jounieh.

Naamatallah Abi Nasr, Member of the Parliament, said: "This is the first step in the decentralization process." People who used to consume time and money to reach Baabda will be able to pay their taxes, and finalize their paperwork in Jounieh.

Abi Nasr said that several proced...

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Dues up for Social Security. Increase affects employers and beneficiaries

National Social Security Fund (NSSF) contributions will increase three percent. Promulgated by Parliament in February, the measure will take effect in September.

Georges Aida, Director General of the Ministry of Labor, said: "Each employer, employee, and the government will pay an additional one percent to the health and maternity department at the NSSF, to finance the health coverage of beneficiaries older than 64."

Previously, employers used to contribute 22.5 percent to the NSS...

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Supersized beach resorts developed along the coast. Increases in numbers, size, locations, services

The number of beach resorts is growing in size and number, according to a special report about hospitality in the August issue of Lebanon Opportunities.

Beach resorts are becoming bigger, more upscale, have more services, and greater accommodation options.

Ghassan Abdallah, Secretary General of the Syndicate of Maritime Firms, said the number of resorts on the southern coastline has increased from three in the early 1990s to 58.

The season began with a flurry of new beach ...

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Volvo dealership sold, to be restructured. Turnover almost doubled within four years

Emile Eid recently increased his stake in the Volvo dealership from 20 percent to 96 percent, by acquiring the shares of former partners Marwan Naffi and Fadi Daouk. The remaining minority shares have been split between Fadi Daouk and Michel Mimas.

Eid, who also owns shares in Volvo Jordan, first invested in the local automotive industry in December 2015 after acquiring a 20 percent stake in the Volvo dealership from Naji Gabriel Abou Adal.

Naffi said the agency's sales almost d...

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Ministry of Economy sacks wheat storage manager.

The Ministry of Economy and Trade has sacked Moussa Khoury, Manager of the wheat storage facilities authority, along with five other employees. The decision came after the ministry received the results of a probe conducted by Price Waterhouse Cooper (PwC) to evaluate the work of the authority. The probe found several administrative and financial violations.

"The manager has long periods of absenteeism or comes in late, especially when his presence is most required," Minister Raed Khoury s...

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Eco-village near Baakline. 34 lodges and pottery workshop

Bkerzay, an eco-tourism village near Baakline in the Shouf, will open in early September.

Ramzi Salman is the founder of the village, which has been developed on a 200,000 square meter land plot.

Bkerzay has 34 lodges, small rooms for hikers and young students. All lodges are built using local construction materials in an architectural style that reflects the rural setting. A hiking trail is also included.

The entire project operates on solar energy.

The project i...

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Service providers reduce Internet charges 50 percent. higher speeds, larger capacity

Internet Service Providers (ISP), including IDM, Cyberia, and Sodetel, have reduced ADSL Internet prices, following the government's decision two months ago to reduce Internet tariffs.

Ogero was the first to reduce tariffs after publishing the decision in the Official Gazette.

Internet Service Providers reduced tariffs between 20 and 50 percent. Those packages whose charges remained the same chose instead to increase capacity and internet speed. For instance, the $12 package prov...

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EDL asks Syria for more electricity. Ministry of Finance increases yearly transfer budget

Electricité du Liban (EDL) has requested Syria to raise the ceiling of electricity exports to Lebanon to 276 megawatts (MW), according to Zakaria Rammal, Transmission Advisor at the Ministry of Energy and Water. The current ceiling is set at 180 MW.

The request comes on the eve of renewing the yearly contract for importing electricity from Syria.

Before the Syrian war, the local transmission network would occasionally receive over 100 MW of power.

The new contract wa...

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Joue Club, Early Learning Centre merge. Partnership managed by Magic Tree

Joué Club, a French franchised toy store, has merged with Early Learning Centre (ELC), a British brand.

Joué Club is a franchise owned by Magic Tree. The local agent for ELC is Transmed.

"Each entity will remain separate after the merger but both will be under the single management team of Magic Tree," said Wael Sinno, Managing Partner of Magic Tree.

The merger is estimated to be in the range of $20 million.

Following the merger, both stores will have...

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20-room hotel opens in Hermel.

Lazord Resort in Hermel, owned by local entrepreneur Hicham Matar, opened this week.

The three-star resort is built on land measuring 6,000 square meters. It includes the 20 room-hotel, 800-capacity restaurant, conference hall, swimming pool, and sports club.

Matar said they are in the process of gaining a nursery license from the Ministry of Public Health.

Investment in the project is around $3.5 million.

Around 35 full time jobs have been created.

"There...

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Public transport study solicited.

The Ministry of Public Works and Transport has launched a request for a quotation to conduct a study for a public transportation project in and around Beirut.

Minister Youssef Fenianos said: "The study will determine what type of public transport should be used, examine traffic patterns, determine the location of stations, and estimate the cost of implementation."

The study will be funded by the Railway and Public Transport Authority (RPTA).

The ministry's plan includes est...

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60-room hotel in Damour next year.

Ghassan Abdallah, owner of Al Jissr, Bamboo Bay, and Laguna beaches, will open Marimba Hotel in Damour, in May 2018.

The four-star hotel will be managed by Marimba, a company recently established by Abdallah.

The hotel will include five floors, one of which is underground. There will be 60 rooms, two restaurants, a year-round pool, lecture hall, and sports club.

Investment in the project is $5 million.

The architect and contractor is Jamal Ismail Office, and Zahi ...

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Balance of payments deficit in first six months. Reaches $1.12 billion, reserves exceed $3 billion

The deficit in the balance of payments (BoP) reached $1.12 billion in the first half of 2017, decreasing 37 percent compared with the same period last year, according to the Central Bank (BDL).

The deficit has triggered an operation by BDL to replenish its reserves, which exceeded $3 billion. The proceeds of this operation are expected to be reflected in July and subsequent months.

The full year of 2016 registered a surplus of $1.24 billion after BDL carried out financial engineer...

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Manufactured food exports up following producer price drop. Total exports take a nosedive

Exports of prepared foodstuff and beverages increased 15 percent in volume in the first half of this year, in comparison to the same period of 2016. It increased from 150,000 tons to 172,000 tons, according to figures published by Customs.

Mounir Bissat, Secretary General of the Syndicate of Lebanese Food Industrialists, said: "As competition is increasing in the exporting markets, some companies have chosen to maintain their export share by reducing prices or selling at cost prices in or...

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Hotel occupancy up, so are five-star rates. Repositioning strategies, innovative non-accommodation activities are behind the increase

Hotels are breathing a sigh of relief after four difficult years, according to a special report about hospitality in the August issue of Lebanon Opportunities.

Rami Sayess, Regional Vice President and General Manager of Four Seasons Hotel Beirut, said: "Business began improving in October 2016."

He said that if business were to continue at the same pace, profits would more than double than those achieved since operations began.

Sayess said that the difference this year is t...

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