BDL Asks Banks to Offer Emergency Loans for Salaries, Businesses

Banque du Liban on Monday called on Lebanon’s banks and financial institutions to grant extraordinary Lebanese lira or US dollar loans to clients already benefitting from loans granted in the past, in light of the new economic strains inflicted by the coronavirus crisis.

The central bank said the new loans can cover previous loan installments for the months of March, April and May; the salaries of the firms’ employees; or other productive and operational needs for the aforementioned period.

BDL said the loans should be granted for no commissions or interest.

“These loans would be paid back over a five-year period through monthly or quarterly installments,” the central bank added, noting that salaries would be paid directly to employees by banks or financial institutions according to payrolls provided by employers.

BDL in return would grant banks and financial institutions no-interest loans in US dollar and for a period of five years in order to cover the loans granted to their clients in Lebanese lira or US dollar.