AMF loans $45 million to Lebanon to finance oil needs
The Daily Star - Business Articles - AMF loans $45 million to Lebanon to finance oil needs
By Bechir Saade
Daily Star staff
Monday, September 05, 2005
BEIRUT: Lebanon received a $45 million soft loan from the Arab Monetary Fund (AMF) to finance the country's oil needs from other markets. "The objective is to reduce the cost of oil derivatives and the costs of financing the production processes of Lebanese state-owned electricity company Electricite Du Liban," said AMF president Jassem Manaai.
This agreement is part of a broader program sponsored by the AMF to finance Arab trade through the issuance of credit lines to 22 national private companies from banks to other parties in the Lebanese external trade sector.
"This agreement is not the first of its kind to be signed by the two parties as it is part of series of agreements signed between the AMF program and several parties concerned in Lebanon" said Manaai.
Apart from this loan, 79 lines of credit have been signed with Lebanon under the Arab Free Trade Program, which is part of AMF, with a total of value of $769 million, Manaai said.
Manaai discussed with the Finance Ministry the next step, which would involve sending a delegation in the coming month to discuss a new loan program to Lebanon.
The interest paid on the current $45 million soft loan will amount to Libor plus 0.375 for the first 6 months.
"The reduced cost of servicing this loan will have a partial positive effect on the balance of payment," said Finance Minister Jihad Azour.
Lebanese Prime Minister Fouad Siniora recently signed a $300 million oil agreement with Kuwait to buy crude at cost prices. Lebanon is also close to buying electricity from Syria following the talks between Lebanese Energy Minister Mohammad Fneish and his Syrian counterpart in Damascus last month.
Lebanon has been in urgent need of oil and oil derivatives at a reduced price so as to face its increased costs of production.
By Bechir Saade
Daily Star staff
Monday, September 05, 2005
BEIRUT: Lebanon received a $45 million soft loan from the Arab Monetary Fund (AMF) to finance the country's oil needs from other markets. "The objective is to reduce the cost of oil derivatives and the costs of financing the production processes of Lebanese state-owned electricity company Electricite Du Liban," said AMF president Jassem Manaai.
This agreement is part of a broader program sponsored by the AMF to finance Arab trade through the issuance of credit lines to 22 national private companies from banks to other parties in the Lebanese external trade sector.
"This agreement is not the first of its kind to be signed by the two parties as it is part of series of agreements signed between the AMF program and several parties concerned in Lebanon" said Manaai.
Apart from this loan, 79 lines of credit have been signed with Lebanon under the Arab Free Trade Program, which is part of AMF, with a total of value of $769 million, Manaai said.
Manaai discussed with the Finance Ministry the next step, which would involve sending a delegation in the coming month to discuss a new loan program to Lebanon.
The interest paid on the current $45 million soft loan will amount to Libor plus 0.375 for the first 6 months.
"The reduced cost of servicing this loan will have a partial positive effect on the balance of payment," said Finance Minister Jihad Azour.
Lebanese Prime Minister Fouad Siniora recently signed a $300 million oil agreement with Kuwait to buy crude at cost prices. Lebanon is also close to buying electricity from Syria following the talks between Lebanese Energy Minister Mohammad Fneish and his Syrian counterpart in Damascus last month.
Lebanon has been in urgent need of oil and oil derivatives at a reduced price so as to face its increased costs of production.
posted by Marcel at 3:36 PM
0 Comments:
Post a Comment
<< Home