Hassan revised her growth forecast for 2010. She said the economic growth could touch eight percent this year if long awaited privatization plans and structural reforms are implemented.

Hassan said that there is a need to increase capital expenditures in the 2010 draft budget, especially in the power sector.

The Ministry of Finance (MOF) will resume selling Treasury Bills (T-Bills) in April, according to news reports.  “In April, market conditions are expected to be more favorable and interest rates are expected to slide further,” sources said.

Last week, the Ministry said it will halt issuing T-Bills until further notice.

The Central Bank will resume selling Certificated of Deposits (CDs) next Thursday after halting the process in July of 2009. The Central Bank will sell $232 million of CDs on March 4. It has already started receiving applications from interested parties.

Part of the issued CDs will have a five-year term with a rate of 7.3 percent. The issue will also include two tranches of seven-year CDs, one with an eight percent yield, and another with a varying rate of 6.5 percent.

The issuance of CDs will help prevent any rise in inflation rates, protect the balance of payments and absorb liquidity from markets, Central Bank Governor, Riad Salameh said earlier.