Sharp rise in Lebanese TB subscriptions
The level of TB purchase subscriptions jumped almost 64 percent to LP562.39 billion ($373.06 million) on April 19th as the amount of maturing TBs rose sharply by 89.5 percent to LP489.89 billion ($324.97 million), thus resulting in an LP72.5 billion ($48.09 million) purchase surplus.
Central Bank Governor Riad Salameh indicated this week that interest rates on Lebanese pound might drop if political and economic conditions improve, especially that recent cuts in US Federal rates might prompt investors to buy Lebanese TBs in the future.
Banks, which accounts for the majority of subscriptions, reshuffled their portfolio, as longer term TBs lost 8.12 percentage points to stand at 35.26 percent while 3-M and 6-M TBs combined accounted for a weight of 44.4 percent, up 7.77 percentage points form April 12th auction.
Nevertheless, the weight of 12-M TBs remained relatively unchanged representing 20.34 percent of total subscriptions. The Central Bank sold LP3bn ($1.99 million) worth of 45-day certificates of deposit after a lack in demand for more than six consecutive weeks. — ( Banque du Liban et d'Outre-Mer Sal )
© 2001 Mena Report (www.menareport.com)