The Central Bank is expected to receive around $1 billion in the form of either a deposits or subscription to Lebanese sovereign Eurobonds soon, sources revealed Thursday.
“Banque du Liban will receive around $1 billion in the near future, which would increase confidence in Lebanon’s financial system and give a boost to the government’s efforts to cut the budget deficit,” a banking source told The Daily Star on condition of anonymity.
They did not reveal the sources of the money or when exactly Banque du Liban would receive the cash injection.
The Daily Star was not able to obtain comment from the Central Bank on the report.
Senior Lebanese officials have visited Saudi Arabia and other Gulf countries in the past few months to seek assistance.
Riyadh and Kuwait have pledged to further help the Lebanese government to enable the country to withstand financial pressures.
“If the reports are accurate then it will be very likely that Saudi Arabia and Kuwait will either deposit money in the Central Bank or buy Eurobonds. This is usually the only way these countries help Lebanon,” another banker said.
They added that any cash flow into Lebanon in these days would surely improve the business climate and probably encourage investors to hold onto their Eurobonds and even buy new ones.
The Daily Star
30/08/2019
