Banks hold 53 percent of debt

Slowdown in first half of 2011 held back deposits’ growth: ABL chairman

July 13, 2011- President of the Association of Banks in Lebanon (ABL), Joseph Torbey, said the banking sector has been affected by the slowdown in economic growth. The growth of deposits in the first half of the year dwindled, but was still acceptable on a global scale, Torbey told As-Safir in an interview published on July 13.

According to Torbey, the banking sector expects the government to introduce the participation of the private sector in funding and managing infrastructure projects. “This will reduce the growth of public debt,” he said.

The ABL chief said the banking sector holds 53.5 percent of the public debt which amounts to around $53 billion. He said the banks have lent the government $28 billion, while the total amount of loans extended to the private sector stands at $37 billion, allocated to more than 500,000 creditors.

Torbey said the government should provide political stability, promote economic reforms, put an end to money squandering, deal with corruption in administrations, and invest in infrastructure. He said it should also manage essential files like oil exploration and mobile communications.