Association of Banks
cuts lending reference rate

Interest cuts

on public debt to follow soon

The Association of Banks (ABL) said it has reduced the Beirut Reference Rate (BRR) on lending in line with the recent decision of the Central Bank (BDL) to cut interest rates on deposits.

It cut the BRR on loans in foreign currencies to 6.75 percent from 8.5 percent.

The BRR on lending in lira was reduced to nine percent from 11.5 percent.

The BRR is a reference rate issued as a recommendation to the banks by ABL.

The ABL said in a statement that the substantial reductions in interest rates on lending to the private sector will be followed soon by similar cuts in the interest rates on the public debt. Such cuts could be reached following an agreement with the Ministry of Finance as a prelude to the rescheduling and restructuring of the public debt, according to the statement. This will result in a significant alleviation of the debt service, the ABL said.

BDL has reduced the interest rate ceiling on foreign currency deposits blocked for more than one year to four percent. The ceiling on similar deposits in lira was reduced to 7.5 percent.