Kafalat guarantees down for 2013

Mount Lebanon has the lion’s share
of guaranteed credits

Kafalat guarantees totaled $118 million in 2013, a decrease by more than 14 percent from 2012.

“Demand on guarantees does not stop and our business continues, but the problem is that companies are less eager to expand their businesses in light of the local and regional unstable situation,” Kafalat official said in a previous statement.

The total number of guarantees reached 871 last year, down from 1,025, in 2012. The agriculture sector registered the largest share with 374 guarantees, representing about 43 percent of the total number. The industry sector came in second, with 293 guarantees (33.6 percent), followed by the tourism sector with 142 (16.3 percent), handicrafts with 43, and specialized technologies with 19.

“Investments are still taking place in the agriculture and industry sectors although at a slower pace, but the tourism sector is negatively affected by local developments, compared to other sectors. That’s why it is lagging behind in third place,” Kafalat’s official said.

Guarantees in Mount Lebanon represented 40 percent of the total number. It was followed by the Bekaa with 21.6 percent, the South with 21 percent, the North with 11.4 percent, and Beirut with six percent.