Central Bank to launch stimulus package

Central Bank of Lebanon Beirut – George Chahine The Governor of the Central Bank of Lebanon, Riyad Salama, has announced plans to launch a stimulus package in an attempt to help the Lebanese economy. The conflict in Syria has had an impact on the economy, and the rate of inflation could reach 6 percent, according to Salama. The target for next year has been set to under 4 percent. "The turmoil in Syria has affected the general climate of investment and consumption in Lebanon," said Salama, adding that the Central Bank is aware of the decrease in foreign demand and the stimulus package will include housing loans and loans to the productive sector." The governor refused to determine the size of the stimulus package but said he would be able to give more detailed information by the end of the year. Salama projected a primary surplus in this year’s budget, saying that deposits went up 7 percent in 2012 with most of the growth emanating from local depositors. Worsening conditions in Syria have had a negative impact on various sectors in the Lebanese economy, as exports fell by 12 precent and tourism by 15 percent.