Wednesday 4 December 2019

Lebanon Latest: Central Bank Slashes Rates to Ease Economy Crisis - Bloomberg

Lebanon Latest: Central Bank Slashes Rates to Ease Economy Crisis - Bloomberg:

Lebanon’s central bank took emergency measures Wednesday in an attempt to ease the worst financial crisis hitting the country in decades.

Banque du Liban, as the central bank is known, imposed a temporary interest-rate cap of 5% on dollar-denominated bank deposits and 8.5% on local-currency deposits received or renewed after Dec. 4, according to a circular posted on its website. It said the decision must be reflected in the pricing of benchmark lending rates by local banks. 


The central bank also said it would temporarily pay 50% of the interest it owed banks for dollar deposits and dollar-denominated certificates of deposits in Lebanese pounds.

The measures will be in place for six months.

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