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Lebanon Local time: 01:39 AM

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.

Clemenceau Street,

Gefinor Center, Bloc E, 5th &6th floors

P.O.Box 113-5794

Beirut, Lebanon

Tel: 961-1-738400/5

Fax: 961-1-738406

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

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

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

www.jpmorgan.com

Below is a list with contact information of the top ten commercial banks (ranked by assets as of December 31, 2006) with correspondent U.S. banking arrangements:

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

www.blom.com.lb

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

www.banqueaudi.com

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

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

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

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

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

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

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

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, as of end 2006, CDR had a total of $1.8 billion in loans and protocols ratified by the Lebanese parliament but not yet disbursed. As of end September 2007, CDR had a total of $842 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. 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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