Subsidized Loans Department


This department specializes in monitoring the compliance of banks with the conditions of government subsidized loans. The Department studies a sample of subsidized loans in banks and ensures that they are in accordance with BDL and BCC circulars.

The department checks invoices & statement of accounts of subsidized loans, and verifies the conformity of loans utilization with the purpose of the loan. Other functions of the department are review of early settlement of subsidized loans, and loan transfer from one bank to another, in addition to investigation of financial groups.

The subsidies take two different forms. The first form is the payment of part of the interest paid by certain borrowers in a particular sector. These loans are:

  • Industrial loans, Touristic loans, Agricultural loans, Software and technology development loans, and handicrafts loans.
  • Loans that are guaranteed by Kafalat S.A.L. (a company which guarantees some loans to small and medium enterprises).
  • Loans granted according to the agreement signed between the Lebanese government and (the European Investment Bank – IFC – AFD).

The other major form of subsidized loans is exemption (or reduction) of Legal Reserves held at BDL. These loans are extended to the following categories:

  • Subsidized loans guaranteed by Kafalat S.A.L.
  • Housing loans granted by banks based on a protocol signed with the Public Housing institution.
  • Housing loans granted by banks based on a protocol signed with the Military volunteers housing unit.
  • Long term housing loans that banks grant to their clients, and which are subject to the exemptions that long term and investment banks are subject to.
  • Private and public sector bonds denominated in foreign currency and purchased without recourse.
  • Direct loans that the banks grant to the public housing institution to construct buildings for rent by limited income groups.
  • Loans granted to the Housing Bank S.A.L. that are used to finance the loans granted by the bank.
  • Micro credits granted with the approval of Micro – Credits Institutions.
  • Housing loans granted by banks based on a protocol signed with the Mutual Fund of the Magistrate.
  • Housing loans granted by banks based on a protocol signed with the Directorate General of the ISF.
  • Housing loans granted by banks based on a protocol signed with the Directorate General of the SG.
  • Housing loans granted by banks based on a protocol signed with the Ministry of Displaced.
  • Loans granted by banks to finance the environmental loans in both energy and non-energy.
  • Loans granted by banks for High School Education.
  • Loans granted by banks based on a protocol signed with the Ministry of Agriculture.
  • Loans granted by banks to students to buy tablets.