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Trade and Project Financing

How Do I Get Paid (Methods of Payment)?

Lebanon has no restrictions on currency conversions and transfers, and no foreign exchange controls affect trading. About 50 percent of international trade is financed through letters of credit, and the remaining 50 percent through direct transfers. There are no credit rating agencies or collection agencies currently operating in Lebanon. Bank and sovereign Eurobonds are the only entities rated by international rating agencies.

How Does the Banking System Operate?

Lebanon is a financial hub for banking activities in the Middle East. It has one of the most sophisticated banking sectors in the region. Bank secrecy is strictly enforced. The Central Bank of Lebanon (CBL) regulates all financial institutions and money exchange houses. In April 2001, Lebanon adopted Law No. 318, which created a framework for lifting bank secrecy, mandating suspicious transaction reporting, requiring financial institutions to obtain and maintain records of customer identification information, and facilitating access to banking information and records by judicial authorities.

Foreigners can open accounts in banks operating in Lebanon and get credit on market terms. The Banking Control Commission (BCC) closely monitors bank credits. All credit transactions are subject to timely and accurate disclosure. The National Institute for the Guarantee of Deposits insures up to LL 5 million (about $3,317) of Lebanese and foreign currency deposits in commercial banks. Bank financial statements are in compliance with international accounting standards. Independent auditors audit annual accounts, and most banks utilize internationally recognized accounting firms.

Foreign Exchange Controls

Lebanon imposes no foreign exchange controls. The foreign exchange market is neither regulated nor restricted.

U.S. Banks and Local Correspondent Banks

Below is a list with contact information of U.S. banks operating in Lebanon:

CITIBANK N.A.
Beytus Park
Bloc A, 3rd floor
Park Avenue
Beirut Central District
P.O.Box 11-1535
Beirut, Lebanon
Tel: 961-1-962440
Fax: 961-1-962445
http://www.citi.com

AMERICAN EXPRESS BANK (Representative Office)
Foch Street, Beirut Central District
The Atrium Bldg, 3rd floor
Beirut, Lebanon
P.O.Box 11-0327
Beirut, Lebanon
Tel: 961-1-987722
Fax: 961-1-987723
http://www.americanexpress.com

BANK OF NEW YORK (Representative Office)
Maarad Street, Place de l’Etoile
The Atrium Bldg, 3rd floor
Beirut, Lebanon
Tel: 961-1-988788
Fax: 961-1-989001
http://www.bankofny.com 

JP MORGAN CHASE BANK (Representative Office)
Clemenceau Street, Gefinor Center, Bloc B,
16th floor, Suite No.1601
Beirut, Lebanon
P.O.Box 11-5133
Beirut, Lebanon
Tel: 961-1-739583
Fax: 961-1-739581
http://www.jpmorgan.com

 Below is a list of the top ten Lebanese commercial banks (ranked by assets as of June 2008) with correspondent U.S. banking arrangements:

AUDI BANK S.A.L.
Banque Audi Plaza, Bab Idriss
Omar Daouk Street
P.O.Box 11-2560 Riad El-Solh
Beirut, Lebanon
Tel: 961-1-994000
Fax: 961-1-990555
http://www.banqueaudi.com

BLOM BANK S.A.L.
BLOM Bank Bldg
Rashid Karameh Street.
P.O.Box: 11-1912 Riad El Solh
Beirut, Lebanon
Tel: 961-1-738938; 961-1-743300
Fax: 961-1-738946
http://www.blom.com.lb

BYBLOS BANK S.A.L.
Byblos Bank Tower,
Elias Sarkis Avenue, Ashrafieh
P.O.Box: 11-5605 Riad El Solh
Beirut, Lebanon
Tel: 961-1-335200
Fax: 961-1-339436
http://www.byblosbank.com.lb 

BANKMED S.A.L.
Mediterranee Group Center
482 Clemenceau Street
P.O.Box: 11-0348 Riad El Solh
Beirut, Lebanon
Tel: 961-1-373937
Fax: 961-1-362706 

FRANSABANK S.A.L.
Fransabank Center, Hamra Street
P.O.Box: 11-0393 Riad El-Solh
Beirut, Lebanon
Tel: 961-1-340180/8; 01-745761/4
Fax: 961-1-354572
http://www.fransabank.com

BANQUE LIBANO-FRANCAISE S.A.L.
Beirut Liberty Plaza
Rome Street, Hamra
P.O.Box 11-0808
Beirut, Lebanon
Tel: 961-1-791332
Fax: 961-1-791332 x 1318
http://www.eblf.com 

BANK OF BEIRUT S.A.L.
Bank of Beirut Bldg
Foch Street, Beirut Central District,
P.O.Box: 11-7354
Beirut, Lebanon
Tel: 961-1-972972
Fax: 961-1-983999
http://www.bankofbeirut.com.lb

CREDIT LIBANAIS S.A.L.
5th Floor, Sofil Center
Charles Malek Ave, Ashrafieh
P.O.Box: 16-6729
Beirut, Lebanon
Tel: 961-1-200028/9
Fax: 961-1-325713
http://www.creditlibanais.com.lb

LEBANESE CANADIAN BANK
St. Charles City Center
Ain El Mraysseh
P.O.Box: 11-2520 Riad El Solh
Beirut, Lebanon
Tel: 961-1-379922
Fax: 961-1-379922
http://www.lebcanbank.com 

SOCIETE GENERALE DE BANQUE AU LIBAN S.A.L.
Sehnaoui Bldg, Riad El-Solh Street
P.O.Box: 11-2955
Beirut, Lebanon
Tel: 961-1-980783
Fax: 961-1-980785
http://www.sgbl.com.lb

Source: Association of Lebanese Banks

Project Financing

Project financing in Lebanon varies and is not always clearly defined. According to the Council for Development and Reconstruction (CDR), the government's executive body for redevelopment, at the end 2007, the total amount of secured foreign financing amounted to $ 8.790 billion, comprised of grants, soft loans, commercial loans, export credits and medium term loans. As of end September 2008, CDR had a total of $ 691 million in loans awaiting parliament’s approval. In addition, CDR has nearly $ 600 million in grants mainly related to pledges prior to Paris III and earmarked for public investments for post-July 2006 war reconstruction; CDR has already spent part of this assistance. Moreover, donors pledged $ 2.7 billion in project financing at the Paris III conference.

About 30 foreign financing sources are involved in CDR's reconstruction plan. Ten main financing sources have contributed over 90 percent of the total foreign financing. These are the World Bank, the Arab Fund for Economic and Social Development, the European Investment Bank, Kuwaiti funds, the Islamic Development Bank, Saudi Arabia, Italy, France and commercial banks.

The World Bank opened a permanent office in Lebanon in early 2000 to track World Bank loans and to assist the Lebanese government in obtaining additional loans geared towards administrative, tax, and social reform, as well as assistance to municipalities.

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