Central Bank launches $1.1 billion stimulus package. Subsidies for old and new housing loans in lira worth $524 million

The Central Bank (BDL) has issued a new stimulus package for 2019 that involves providing interest subsidies to loans worth nearly $1.1 billion, according to a new BDL circular.

The package includes loans denominated in the national currency worth $547 million, and loans in the U.S. dollar totaling $500 million.

The lira loans mainly consist of housing loans which total $524 million. The remaining $50 million comprise microloans, as well as loans for education and productive secto...

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A.N. Boukather acquires exclusive rights to Ford sales and imports. The second brand to join the company in one year

A.N. Boukather (ANB) has acquired the exclusive right to import and sell Ford vehicles in the country.

Ford is the second automotive brand to join ANB in less than a year. The company in March 2018 acquired the right to import and sell Opel, which was owned by Techno Cars.

"We selected Ford as it is a strong car and has a good reputation. We started to push the brand in the market through social media and marketing campaigns," said Anthony Boukather, Chief Executive Officer at ANB....

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Iraq-Tripoli oil pipeline expected back in service. Refinery operations halted since 1982

The oil pipeline between Iraq and Lebanon is expected to go back online.

"Lebanon is in contact with officials in Iraq and Syria to discuss ways to reboot operations in the pipeline linking Kirkuk to Tripoli," said caretaker Energy and Water Minister Cesar Abi Khalil.

"These efforts are part of a comprehensive vision for the Oil Installations in particular and the oil sector in general," he said.

Bassam Issa, Chief of the Syndicate of Employees at Iraq Petroleum Company (IPC...

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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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ENTER RUSSIA!. Tripoli Oil Installations leased to Rosneft

The Ministry of Energy and Water (MoEW) signed an operations and service contract with Russian state-owned oil firm Rosneft for Tripoli Oil Installations in Lebanon (TOIL).

The contract, which has a term of 20 years, will allow Rosneft to store its oil products in TOIL, which have a storage capacity of 450,000 metric tons.

The contract includes the rehabilitation and expansion of the storage terminal.

"The implementation of projects in the Middle East is one of the strategi...

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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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IFC ready to invest $1 billion per year. Infrastructure is the target sector

The International Finance Corporation (IFC) is willing to invest $1 billion a year locally, said Saad Sabrah, Country Head of Lebanon, Syria, and Yemen.

"But this investment is conditioned on one thing: Reform," the IFC official said.

A number of reforms were requested from the government at the CEDRE international conference, where the international community pledged $11.8 billion for infrastructure projects. Required reforms include reducing fiscal deficit by one percent per year...

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Farming disaster damage up to $400 million annually. Floods and cold waves top the list of risks

The primary risks impacting agriculture are mainly related to natural hazards, especially floods, cold waves, heavy rain, hot waves, and forest fires, according to a study published by the Ministry of Agriculture (MoA) and the Food and Agriculture Organization (FAO).

The study, 'Vulnerability and risk Assessment to Facilitate Planning for Disaster Risk Reduction and Climate Change Adaptation in in Agriculture', was conducted by the National Council for Scientific Research (CNSR). The res...

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Digital sector to increase employees. Ministry of Labor and InfoPro study shows lack of skills and experience as challenges

More than half (55 percent) of digital sector companies plan to increase staffing, according to the Ministry of Labor's (MoL) "Digital Sector Labor Market Assessment" study, which was released recently.

The MoL also conducted a similar study, "Fashion and Jewelry sector Labor Market Assessment," which showed that the majority of both jewelry (80 percent) and fashion (60 percent) businesses surveyed will maintain their number of staff.

The two studies were conducted in collaboratio...

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Tobacco processing plant to open in Batroun. German company to manage operations

Régie Libanaise des Tabacs et Tombacs (Régie) will open a water pipe tobacco (Tombac) processing plant in Batroun, to be completed in 2020.

Régie has allocated 5,000 square meters for the project in a building it owns in Batroun.

The German-based company, Von Eicken, won a tender last year to equip and operate the new factory, and market its products, under Régie's supervision.

Von Eicken will invest around $10 million to install two production l...

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Transshipment up at Port of Beirut. Containers for local consumption decreased by three percent

Transshipment at Port of Beirut (PoB) reached 431,000 twenty-foot equivalent units (TEUs) in 2018, up six percent compared to the preceding year, according to statistics released by the port.

"The increase in transshipment activity compensated for weak local consumption," said Elie Zakhour, Chairman of the International Chamber of Navigation (ICN).

Containers for local consumption decreased by three percent to 874,200 TEUs.

"One of the reasons why transshipment improved is r...

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Moody's downgrades Lebanon sovereign rating. Changes country’s outlook to stable

Moody's Investors Service has downgraded the issuer ratings of the Lebanese government to Caa1 from B3. It changed the outlook on the country to stable from negative.

The rating agency said its decision to downgrade the ratings "reflects the heightened risk that the government's response to increased liquidity and financial stability risks will include a debt rescheduling or other liability management exercise that may constitute a default under Moody's definition."

At ...

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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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Property sales register $8 billion. Area and number of construction permits down

The number of real estate sales transactions reached 61,000, at a value $8 billion in 2018, according to figures released by the General Directorate of Land Registry and Cadastre (GDLRC). Sales are down 16 percent from 2017 which was considered an 'exceptional year' according to the GDLRC. Value has decreased by 18 percent. The average value per transaction in 2018 reached $133,400.

A larger than usual number of properties was registered in 2017, although they were bought earlier, making ...

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New car sales drop 11.5 percent. KIA tops the chart

New vehicle sales and registrations declined more than 11 percent in 2018, following changes in lender requirements.

Overall vehicle sales in 2018 dropped 11.5 percent from the preceding year, with 35,300 private and commercial vehicles registered.

New passenger vehicle registrations in 2018 declined 11.3 percent from the preceding year to reach 33,000. Some 2,289 commercial vehicles were registered in 2018, a decline of 13 percent during the same period.

The decline in sale...

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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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Two million tourists in 2018 6 percent increase for sector. European visitors increase by ten percent

Two million tourists visited the country last year, registering a six percent increase compared to 2017, according to the Ministry of Tourism (MoT).

The largest number of tourists came from Europe (706,000), registering a growth of ten percent in 2018, compared to the preceding year. Most of the European tourists were French, registering ten percent growth, followed by Germans and British.

"Efforts over the past years to diversify the country's touristic offerings have paid off, 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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Eurobonds recover after clarifications on debt. Highest increase in almost a month

Prices of Lebanese dollar-denominated Eurobonds have partially recovered after reassurances from top officials that debt restructuring is out of the question.

Eurobonds maturing in 2037 plummeted from $75.4 to $70.75 on Jan.11 following a press report on Jan. 9 about a possible debt restructuring. They were trading Monday at $72.25.

The 2025 issue of the Eurobonds partially recovered to $76 on Monday from $74.5 on Jan. 11. They had closed at $79.4 on Jan. 9.

Bonds maturin...

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Tax free spending up by seven percent. Trend is back towards leisure

Tax free spending increased by 6.5 percent last year compared to 2017, according to Global Blue's report: 'Globe Shopper Spending Insights YTD – January to December 2018'. The report accounts for VAT refunds at Beirut Rafic Hariri International Airport and other borders.

Tax free spending grew 5.5 percent in 2017 compared to 2016.

"In mid-2017, tourist tax free spending started to increase. This coincided with the end of the military campaign on the Eastern borders. Tourists are m...

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Lira to dollar peg not being reconsidered. Minister of Finance: Stability of the local currency is crucial

The lira peg to the dollar will not be part of public finance reform said Caretaker Minister of Finance Ali Hassan Khalil.

The stability of the lira is crucial, he said.

Khalil said that the reforms include managing public debt and rescheduling it in coordination with the Central Bank and the local banks. "There is no intention to restructure the debt or violate the rights of sovereign bondholders," he said.

The fiscal reforms proposed by the Ministry of Finance are part...

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Minister of Finance walks back on debt restructuring report. Government committed to Eurobond holders

Caretaker Minister of Finance Ali Hassan Khalil said that the government is committed and will remain committed to its Eurobond issuances and to holders of these bonds.

Khalil's statement came following a heavy sell-off of the country's dollar-denominated bonds that was triggered by an earlier press report citing him as saying that the Ministry of Finance (MoF) is studying the possibility of debt restructuring.

Khalil said that the MoF is still studying ideas for managing the d...

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Ski season opens early thanks to Storm Norma. Hotels and restaurants anticipate brisk business

Ski resorts are open for business after Storm Norma dumped fresh snow, raising hopes for a season that is significantly better than last year's.

The country's ski resorts opened their slopes to the public on Dec. 31, and expect to remain open for the next three months.

"We have one meter of snow so far, and this is enough to keep us open for three months," said Nicole Wakim, Marketing Manager at Mzaar 2000, the company that owns Mzaar Ski Resort.

Some 70,000 skiers visited M...

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McKinsey study made public GDP targeted at $80 billion. Debt-to-GDP ratio is to be lowered to 110 percent

The much awaited McKinsey Report has been published by the Ministry of Economy and Trade (MoET). It is a comprehensive five year national economic plan that was prepared by McKinsey & Company.

The 'Lebanon Economic Vision' study, was mandated by a government decree in October 2017.

McKinsey has set several targets for 2025 that pertain to the economy in general and to key economic sectors.

The real GDP is targeted at about $80 billion and the GDP per capita at around $16,00...

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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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11 Lebanese banks sued for knowingly aiding Hezbollah. Plaintiffs bring action in a New York court. More similar lawsuits are being filed

Riad Salameh, Governor of the Central Bank (BDL), has confirmed that a civil lawsuit by around 1,200 plaintiffs was brought against 11 Lebanese banks for being in assistance of Hezbollah. The plaintiffs, all US citizens, have filed the lawsuit in a New York court.

The defendants in the lawsuit include the following banks:
1. Bank Audi
2. Bank of Beirut
3. Bank Of Beirut And The Arab Countries (BBAC)
4. Banque Libano-Française (BLF)
5. BLOM Bank
6. Byblos B...

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Four gin brands now manufactured locally. Local demand is growing and export potential materializing

Gin production is emerging as a promising local industry. Four distilleries have opened last years.

Jun, a new craft gin distillery, was opened by Chadi Naccour and his wife Maya Khattar, last June in Rechmaya, Mount Lebanon.

'Gata' gin which is being produced after two years of research by Colonel Beer, is now available in the market. Colonel Beer, a craft beer brewery in Batroun, was founded by Jamil Haddad in 2012. Gata was awarded as 'Best New Product 2018' by Lebanon Oppo...

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Almost nine million passengers at airport. Up by seven percent

The total number of passengers, including arrivals, departures, and transit at the Beirut Rafic Hariri International Airport (BRHIA) went up by seven percent to reach 8.8 million in 2018 compared to 2017, according to statistics released by the airport.

"The peak month was December, when we received on the 23rd and 29th around 30,000 passengers each," said Tony Ghostine, Head of Economic Division at BRHIA.

The average number of passengers that the airport receives per day is 17,0...

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ID application goes digital.

Application for identity cards (IDs) will be digitized through electronic fingerprints as of 31 January, according to a circular published by the directorate of civil affairs (Officially called General Directorate of personal Status – DGPS). It is part of a process of digitizing all DGPS records.

Citizens 15 years and older, from now on, will have to apply for IDs at the DGPS' branches. Their electronic fingerprints will be scanned, and will replace the traditional inked fingerprintin...

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Labor unions on general strike Economic Associations are not. First of many Fridays planned for protests

The General Confederation of Labor Unions (GCLU) has called workers of the public administrations and private sector to strike on Friday, January 4.

The call for the strike was anonymously initiated on social media. It aims to protest against the country's living conditions and the delay in formation of a Cabinet.

"The Cabinet formation shouldn't be a request, but a constitutional duty," said Bechara Al Asmar, Secretary General of GCLU.

The Economic Associations announced ...

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Beirut New Year fiesta ranked top 10 worldwide. Selected by National Geographic

National Geographic has ranked the Nejmeh Square festivities among the top ten New Year's Eve parties round the world.

More than 100,000 people attended the event that started at 4:30 pm till 1:30 am, according to Beirut Mayor Jamal Itani.

The Municipality of Beirut had appointed Beirut Events and Street Shows (BEASTS), an NGO, to organize the party for the second consecutive year. BEASTS contracted with ITS., an event management company, to organize the New Year's Eve party.
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