The decision was taken due to the accumulation of a surplus in the treasury account of about $5.3 billion. Sources close to the Ministry said that issuing T-Bills will stop starting next Thursday- the weekly T-Bill offering date.

Salameh said that the Central Bank will resume issuing Certificates of Deposits (CDs) after halting the process last july to pull out the excess of liquidity from markets, and to prevent any rise in inflation rates. “We will make sure to maintain an inflation rate of less than four percent in 2010,” he said.

Salameh said that issuing CDs will also prevent speculation and protect the balance of payments. He said that total liquidity that can be available in terms of credit stands at approximately $15 billion.

Salameh said that there is no room for a real-estate bubble in Lebanon. “The hike in property prices is fuelled by the real increase in demand which is mainly driven by the improvement in economic conditions and population growth.”

Salameh said that the Central Bank policies protect the country from a real-estate bubble. “Investors can borrow a maximum 60 percent of their projects total cost, as they are obliged to self-finance not less than 40 percent of the project,” he said.