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AGRO INVEST تشجيع الإبتكار في الصناعات الغذائية. BDL Financing Incentives. Banque Du Liban Financing Unit. BDL stimulates financing investments in targeted economic sectors either by Interest Rate Subsidy scheme, or Exempting banks from part of the required reserve requirement, or
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AGRO INVESTتشجيع الإبتكار في الصناعات الغذائية BDL Financing Incentives Banque Du Liban Financing Unit
BDL stimulates financing investments in targeted economic sectors either by Interest Rate Subsidy scheme, or Exempting banks from part of the required reserve requirement, or By providing banks with a soft loan to finance these projects at low cost. The Tools
Interest Subsidy • Micro Credit • Incentives 2009 • Environmental Loans • Incentives 2013
Interest Subsidy on Loans Extended to Productive Economic Sectors Loans extended to local private sector projects in the industrial, touristic, agricultural, IT development and handicrafts sectors benefit from a 4.5% Lebanese Government interest subsidy rate, given the following conditions: The project is in Lebanon. The loan is used to finance a new project or the expansion of an existing one, with a minimum value of LBP 50m or its equivalent (USD/€). The term of the loan must range between 5 and 7 years. The total value of subsidized loans granted to a single economic group, must not exceed LBP 15bill or their equivalent, or an amount of LBP 60bill in case a number of debtors are not considered as a single economic group for justified economic and financial purposes. Interest and commissions (before government subsidy) are as follows: LBP: ≤ 2Yr. TBs. + 1% = 5.84% +1. % = 6.84% FX : ≤ 3Mths. LIBOR (or Euribor) + 7%.
Interest Subsidy on Loans Guaranteed by Kafalat SAL • Loans guaranteed by Kafalat SAL and extended to SMEs in productive economic sectors benefit from a 4.5% Lebanese Government interest subsidy rate, given the following conditions: • Conditions set by Kafalt SAL. • The term of the loan is up to 7 years, with a grace period ranging between 6mths to 1 year. • Interest and commissions (before government subsidy) are as follows: LBP: ≤ 40%*(1Yr. TBs.) + 3% = (40% * 5.35%) + 3% = 5.14% FX : ≤ 1Yr. LIBOR + 5.5%.
Interest Subsidy • Micro Credit • Incentives 2009 • Environmental Loans • Educational Loans • Incentives 2013
Micro Credit • Loans granted through micro credit institutions to individuals and small enterprises employing four people or less, in order to help them start or develop their business in industrial, service, touristic or commercial sectors, provided the following: • The loan amount does not exceed LBP 20 million. • Its repayment period does not exceed 5 years.
Interest Subsidy • Micro Credit • Incentives 2009 • Environmental Loans • Educational Loans • Incentives 2013
Incentives 2009 • This scheme started for loans granted since January 1, 2009 to finance new projects or expand existing ones in the all economic sectors (except real estate development), and will continue till December 31, 2013 , provided the following: • They are not granted for the purpose of financing working capital or refinancing existing projects or commitments. • Grace period can range between six months to four years from the disbursement date. • The repayment of principal is up seven years starting from the end of the grace period. • Interest and commissions are as follows: LBP: ≤ 40% * 1Yr. TBs. + 3% = 2.14% + 3% = 5.14% FX : ≤ Cost of Funds + 2%.
Interest Subsidy • Micro Credit • Incentives 2009 • Environmental Loans • Educational Loans • Incentives 2013
Industrial Sector, Touristic Sector, Agricultural Sector, Commercial Sector, Medical Sector, Educational Sector, Residential Projects (Buildings, Houses), Other sectors… Sectors that can benefit from the NEEREA mechanism
Environmental Projects Non-Energy Related: Any project concerned with pollution abatement, solid waste and waste water treatment, recycling. Ecotourism, organic agriculture, cladding and landscaping. Energy Related (NEEREA Mechanism): Any undertaking related to Energy Saving and Renewable Energy. Lighting, Ventilation systems, Generators, Heating and Cooling, Refrigeration, Furnaces, Boilers, Solar Energy, Photovoltaic, Biomass, Wind energy, Buildings envelope.
Environmental Projects Re-modeling Existing Projects: Repayment period up to 10 years, including the grace period. Grace period ranging from 6 months to 2 years. • New Projects: • Repayment period up to 10 years, beginning after the end of the grace period. • Grace period ranging from 6 months to 4 years.
Grant Contract Signed between BDL and EU A grant contract was signed to support investments in sustainable energy in the amount of €12,200,000. The Central Bank would, pay a grant to subsidize loans extended to finance energy projects, with a maximum amount of $5m. energy loans:
Interest Subsidy • Micro Credit • Incentives 2009 • Environmental Loans • Educational Loans • Incentives 2013
Incentives 2013 • A new stimulus package has been recently introduced by the Central Bank, consisting of USD 1.46 billion in the form of soft loans extended to Lebanese banks in order to boost lending activity and fuel economic growth, provided the following general conditions: • The Central Bank extends these loans at an interest rate of 1%. • Funds are allocated to banks on a first-come first-served basis. • Incentives are provided to support housing, education, renewable energy projects, innovative projects, research & development ventures, entrepreneurship, and various productive sectors of the economy. • The loan to the final beneficiary is used to finance a new project or the expansion of an existing one. • Loans cannot be used to finance working capital expenditures or to finance acquisitions of shares and participations in legal entities. • The 1% interest cost is to borne equally between the bank and the beneficiary.
Incentives 2013 Loans granted in LBP to entrepreneurs to finance new projects in the field of knowledge and innovation: The loan amount does not exceed LBP 300 million. The borrower is granted a grace period of one to three years as of the disbursement date. The reimbursement period of the loan principal does not exceed seven years, excluding the grace period. All interest and commissions should not exceed 0.75%.
Incentives 2013 Loans granted in LBP to finance Research and Development Ventures in productive sectors: The borrower is granted a grace period of two to four years as of the disbursement date. The reimbursement period of the loan principal does not exceed ten years, excluding the grace period. All interest and commissions should not exceed 0.75%.
