European Bank Loan for Industrials in Lebanon
Industry Minister George Frem discussed this week with the Head of the Lebanese Banks Association the conditions for having industrialists benefit from the loan agreement between the government and the European Investment Bank signed in August 2000.
The loan amounted to Euro30 million ($26.5 million) aimed at investment opportunities in the private sector.
The loan matures in 10 years with two-year grace period, and interest rates range between 4 and 5 percent. The Central Bank is acting as the loan manager with operations conducted through several banks. Financing ranges between Euro 50,000 and Euro 2 million or equivalent to 50 percent of a project’s tentative value, meaning the loan is targeted for industrial projects costing between Euro100,000 and Euro 4 million.
Every industrialist is allowed to finance only two projects at a time, on condition that the loan will be strictly used for expansionary purposes, establishment of new enterprises, and/or purchase of additional equipment. ¯ ( Banque du Liban et d'Outre-Mer Sal )
© 2000 Mena Report (www.menareport.com)