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التيار الوطني الحر
Banks Resume Lending Under Tight Rules
Lebanese banks continue their gradual return to banking activities by offering "fresh" dollar loans to the market, with their loan portfolios reaching approximately $794 million by the end of 2025, compared to $418 million in 2024. Banks impose strict conditions on these loans, including parallel guarantees and interest rates ranging between 9% and 14%, with short-term durations. Despite a high demand for borrowing, the available liquidity to cover these loans does not exceed $1 billion, amid cases of bank insolvencies and the absence of a comprehensive bankruptcy law for the past seven years. The Central Bank of Lebanon remains responsible for regulating the sector, but its current focus is on protecting depositors' funds, with limited supervisory capabilities. Data indicates that banks are striving to restore their activity and enhance profits, taking advantage of government collusion, despite their limited role in financing real economic activity.
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