SME loans drop reflects poor economic situation

Loans provided to Lebanese small and medium enterprises (SMEs) by Kafalat, the government-sponsored loan guarantee company, dropped by 16 percent in 2012 to $138 million, down from $165 million. No suprise amid the domestic and regional political instability, such a drop is a clear indicator of an ailing economy. The number of loans guaranteed totaled 1,025, down from 1,272 a year earlier. However, the average loan size increased to around $134,000, from $130,000 in 2011. Businesses from Mount Lebanon snagged 41 percent of the total, followed by South Lebanon with 22 percent. As for sectors, 39 percent of loans were given to agricultural businesses, the industrial sector received 38 percent, tourism 17 percent and handicraft 4 percent. Specialized technologies accounted for 1 percent of the SME loans. BDL extends $1.46 billion in credit facilities to local banks Banque du Liban (BDL), Lebanon’s central bank, is extending financial facilities to local