$1 billion stimulus
from Central Bank
One percent interest rates
The Central Bank (BDL) has approved a new stimulus package of LL1,500 billion ($1 billion) for 2017, according to BDL’s intermediate circular 444. The package consists of soft loans to banks at an interest rate of one percent.
This brings the amount of money injected in the economy under BDL’s stimulus program to $5.4 billion. The program was first launched in 2013 and aims to boost lending at low interest rates to the private sector, mainly for small and medium enterprises (SMEs).
Tourism, agriculture, industry, information technology, environment, housing, education, and innovation are being targeted.
BDL set an upper limit of $600 million for dedicated housing loan credit facilities of banks as part of the 2017 stimulus, according to the circular.
The incentives that are aimed at the economy began in 2009 by exempting banks from reserve requirements against soft loans to productive sectors, before introducing the new stimulus scheme at a time when many banks could no longer use additional amounts of their reserve requirements.
Reported by Shikrallah Nakhoul
Date Posted: Nov 21, 2016