The Association of Banks in Lebanon published the following press release:

In line with the intermediate circular number 544 issued by the Banque du Liban (Central Bank) on Thursday 13 February 2020, the ABL Board of Directors decided to reduce the Beirut Reference Rate (BRR) on Lebanese pound loans to 9% from 11.5%, and for U.S dollar loans to 6.75% from 8.5%.

These fundamental reductions came in an early implementation of the aforementioned circular without waiting for the deposits’ maturities varying from one to six months. The reduction of the BRR also comes in the wake of the policy established by the new government after a series of meetings held in the Presidential Palace, the Grand Serail or the Ministry of finance, in which the President of the ABL participated, and which aimed at reviving the national economy in the current difficult times.

The ABL urges banks members to implement this decision as soon as possible on all clients who are debtors, hoping that the activity of the business sector will be restored in order to preserve the workforce and improve the economic, social and financial situation of the country.

The ABL also affirms that the reductions applied on the private sector will soon include a corresponding reduction of the public debt that should be reached in cooperation with the Ministry of finance, as an introduction to the rescheduling and the restructuring of the public debt to make it more bearable, and to add resources to the treasury that can be used to promote the economic and social state functions.

The ABL takes this opportunity to state to the public opinion that banks’ resilience depends on that of the economy and the peace of the country. It also recalls that the measures taken since last November 17 were necessary to the protection of clients’ deposits as well as to Lebanon’s economic and financial relations with foreign countries, in order to ensure as well the continuity of the services offered to the Lebanese people through their internal and external networks. Without any doubt, understanding the requirements of this period of time can fasten the way out of this crisis, knowing that banks, like all Lebanese people, are bearing their share of the current burden.

Communication & PR Department