Contractors to benefit from BDL low interest loans

The value of such loans will be deducted from banks’ mandatory reserves

Building contractors working on public projects can now benefit from Central Bank subsidized low interest loans issued by local banks at no more than three percent interest, according to a recently released BDL intermediate circular.

The value of the loans extended to contractors is deducted from issuing banks’ mandatory cash reserves held at zero percent interest with BDL, thus giving banks incentive to lend to this sector of the economy.

Included are loans given in Lira to contractors to build or renovate government buildings, provided the loan is paid off as per the cash flow chart for the project in a period not to exceed seven years and that interest and commission on the loan not exceed three percent per annum.

Also eligible for subsidized low interest loan under the BDL program are housing loans given in Lira to members of the General Security.


Reported by Hani Bathiche