Lebanese banks ready to finance development

Head of the Association of Banks in Lebanon (ABL) Joseph Torbey said Lebanese banks were willing to finance all development opportunities in the private sector.

Torbey made these remarks after meeting with Finance Minister Raya Haffar Hassan to discuss the financial situation of the government and efforts to reduce the budget deficit.

“We are ready to finance all the development projects of the private sector. But the state must secure stability and guarantee proper climate to draw funds from investors,” Torbey said.

He told Hassan the ABL was deeply concerned by the delay in naming the candidates for the vacant positions in the Banking Control Commission, stressing that the commission was very important to supervise bank operations in Lebanon.

Torbey said he discussed with Hassan the prospects of financing the state’s public debt.

“It is imperative to increase the size of the Lebanese economy as this move would increase the country’s GDP. If this happens then the debt-to-GDP [ratio] will fall,” Torbey said.

At present, Lebanon’s debt-to-GDP ratio is 155 percent.

Torbey said banks were also ready to finance some state projects on the basis of Build, Operate and Transfer contracts.

He added that all Arab and international financial institutions are willing to provide grants and soft loans to Lebanon to finance development projects.

– The Daily Star