| Central Bank raises T-bill
benchmark In a move to increase demand for the
ailing Lebanese pound, the Central Bank on Monday temporarily raised the benchmark on the
government Treasury bills to 16.14 percent from 14.14 percent.
One banker said that T-bills in the primary markets remained 14.14 percent, but if an
individual wanted to buy a two-year T-bill from the Central Bank he would receive 16.14
percent.
The banker added that the Central Bank may reduce the benchmark to 14.14 percent in less
than three months. One economist warned of the negative consequences of this step on the
pubic debt, which reached $27.6 billion at the end of February this year.
“This will add a pressure on the government which seems unable to boost the
confidence on the national currency,” he said.
On Monday, the Central Bank sold over $820 million in T-bills.
But bankers believe that the Central Bank remains the biggest buyer of T-bills.
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