June 10, 2011- EFG Hermes revised down its outlook on the economic performance in 2011, reducing its growth forecast to 3.5 percent, a report by the BLOMINVEST Bank said.

The Egypt-based investment bank had previously expected Lebanon’s GDP to slow down to five percent in 2011.

According to EFG Hermes, weaker government revenues and higher spending on oil supply to Electricité du Liban (EdL) are set to push the fiscal deficit up to 9.2 percent.

Hermes said it was concerned regarding the disposition of banks to refinance maturing Treasury Bills in 2011 which add up to an amount of $11.5 billion, although they have shown their commitment to refinancing government debt earlier this month.