Lebanon signs agreement with Arab Fund for $80 million

 

The Arab Fund for Economic and Social Development has signed two agreements worth $80 million with the Lebanese finance ministry and the Central Bank as part of pledges made at the Paris 3 donors” conference and contributions to the banking sector.

 

Under the terms of the agreements, the Fund will provide the ministry $37 million and give a loan of $43 million to the Central Bank.

 

Finance Minister Jihad Azour said Wednesday at the signing ceremony at the Grand Serail that the pledge was part of a $4 billion agreement signed after Paris 3 to back the state budget, to revive the economy by funding the private sector and to support water projects in the country.

 

Azour reiterated that despite deteriorating political conditions the government was able to maintain financial stability.

 

He also said that in the coming weeks Lebanon will receive around $222 million as part of the $650 million French loan and the first batch of the European Union”s pledge.

 

International donors meeting in Paris in January pledged more than $7.6 billion in aid for Lebanon to bolster Premier Fouad Siniora”s government and help the country recover from the 2006 summer war between Israel and Hezbollah.

 

Much of the aid was in the form of grants, soft loans and direct support to the government.

 

Central Bank governor Riad Salameh also said at the signing ceremony of the second agreement at the Bank”s headquarters that the $43 million loan finances reform projects aimed at adopting international standards in the banking sector.