The Ministry of Finance has successfully issued and exchanged $1.4 billion worth of Eurobonds in April. “These bonds had lower yield than the ones issued before,” said Ali Hassan Khalil, Minister of Finance.

Demand on bonds exceeded the offer by 35 percent. Exchanges reached 80 percent of the offered amount. The first issue, six-year maturity bonds, was valued at $600 million with a 5.8 percent interest rate, the second a 12-year maturity at $800 million with a 6.7 percent. Khalil said: “These interest averages are good compared to the secondary market. It is proof of confidence in the local financial and economic sectors.”

According to Joe Sarrouh, Executive Advisor of Fransabank Chairman, these interests are slightly above the curve.

Subscription by banks reached 23 percent of the issues. Sarrouh said: “Banks are always committed to support the public sector, especially when issuing treasury bills. But they also call for reforming public finance.”

In 2013 and first months of 2014, subscription by banks grew by 6.6 billion, whereas the share of the Central Bank’s (BDL) dropped by around $1.3 billion. Khalil said that this is a proof that banks are not refraining from bond subscriptions.