Kafalat guarantees through May

Activity drops by 22 percent, average guarantee for loans at $136,000

June 28, 2011- The number of guarantees issued by the government-subsidized program ‘KAFALAT’ fell by around 22 percent during the first five months of 2011 compared with last year. The number of guarantees fell to 474 this year in comparison with 605 guarantees in 2010.

The value of the guarantees declined on year-to-date basis to L.L.97 billion ($64.4 million), with the average value per guarantee advancing to L.L.205 million ($136,000) up from L.L. 180 million ($120,000) compared to the same period last year.

The industrial sector accounted for the majority of issued Kafalat loans, totaling 41 percent. The agricultural sector accounted for 38 percent, and the tourism sector for 17 percent of the issued loans.

The breakdown of Kafalat loans by region marked a heavy concentration in the Mount Lebanon region, accounting for 43 percent of total issued Kafalat loans during the first five months of this year. The North acquired 16 percent of the issued loans, the Beqaa 13.7 percent, the South 11.6 percent, Nabatieh 8.4 percent and Beirut 6.96 percent.