These banks are now offering housing loans in dollars instead of Lebanese pounds
with an interest rate of around 6-7 percent, compared to 3 percent for subsidized loans.
The second element is that by regaining the confidence of the market, vis a vis the Lebanese pound
, and the increase in deposits in Lebanese pound
, it has allowed the banks to start giving credits in Lebanese pound
One has to bear in mind that in recent months there has been a major shift of bank deposits from foreign currencies to Lebanese pounds
," he said.
Bankers added that depositors can easily issue checks in dollars from their banks and said that this would not change even if ATM withdrawals were confined to Lebanese pounds
Bankers say Lebanon's central bank intervened two weeks ago for the first time in two years to buy Lebanese pounds
, after fears that the political row could escalate pushed the dollar to the outer limits of its exchange rate against the pound.
The result has been impressive: the consolidated balance sheet of the country's commercial banks rose by just over 26 per cent in the year ending last September to reach 43,850 billion Lebanese pounds
(LL), equivalent to about $28.
This will bring the average interest on Lebanese pound
deposits to 8 percent compared to around 4.
It rather reflects the instructions given by some clients during the turmoil when these clients wanted to switch some of their deposits from Lebanese pound
BEIRUT: The average rates on the Lebanese pound
returned to their normal levels Monday after reports that some commercial banks have offered up to 13 percent on pound deposits, bankers said Monday.
Our branches noticed that many depositors started shifting part of all of their deposits from dollar accounts to Lebanese pound
Download Salameh at Arab Economic Forum: The Lebanese pound
will remain pillar of trust
Summary: To beef up their national currency funds, a number of Lebanese banks are offering up to 11 percent interest on Lebanese pound
deposits, sources said Thursday.