The size of subsidized interest loans reached $2.55 billion by the end of June 2009.

In May, BDL issued circulars to subsidize interest rates on loans to productive sectors in Lebanese pounds and foreign currency.

It also decided to partially lift reserve requirements on loans, with eligible loans to be processed up till June 2010.

The decision came in response to a request from the Association of Bank to stimulate lending in Lebanese pounds and to encourage economic activity.

BDL said it has formed a corporate governance task force. The commission will govern performance of banks, with an emphasis on the boards of directors.

Also, the Bank said that it will set up a new department to improve payment systems in 2010.