Banks Specialized in Medium and Long Term Credits

Semi Public Development banks established
through individual legislative decrees

 BANQUE DE l'HABITAT (THE HOUSING BANK)

Banque de l'Habitat is a Lebanese shareholding company established in January 8, 1977 whose main objective is credit extension to the housing sector.

The bank's capital at its inception was LBP 50 million divided as follows: 27% to the State, 37% to the National Social Security Fund (NSSF), and the rest to the private sector which included banks, financial institutions, insurance companies and real estate companies working in Lebanon and in the Arab countries, as well as natural Lebanese persons.

In 1989, due to the adverse consequences of the war and to the depreciation of the Lebanese pound, the real value of the loans given by Banque de l'Habitat and its capital declined sharply. The Banque de l'Habitat ceased its operations. However, in December of 1993, Act No. 283 amended the law establishing the Banque de l'Habitat, and increased its capital to LBP 50 billion, with a maximum contribution of the State limited to 20%, and a participation of individuals not exceeding 10% of the capital.

Banque de l'Habitat, through its workplan, its statutes, and mode of credit extension, aims at financing the ownership of housing, construction works, renovation and restoration of residential units.

Its main functions include:

• granting loans to individuals of limited income to purchase, construct, and repair their homes.

• obtaining and upgrading land to be sold later at lower prices to individuals or to companies in order to encourage the construction of low-cost dwellings.

• extending loans to housing cooperatives and to building materials cooperatives .

• cooperating with the State in financing housing projects.

THE NATIONAL BANK FOR INDUSTRIAL AND TOURISTIC DEVELOPMENT  (Non Active)

The National Bank for Industrial and Touristic Development is a Lebanese joint stock company created by virtue of the law No. 2351 dated December 10, 1971. The bank started its operations in 1973 and its main objective consisted in developing the industrial and touristic sectors in the Lebanese economy through financing investment projects, encouraging the investment of both local and foreign capital, and providing other services necessary to achieve this objective within the overall political and economic policies of the government, and its development plans.

The bank's capital at its inception was LBP 66 million divided as follows: 51% to the State, whereas the private sector, represented by the banking sector, holds the remaining 49%.

In 1994, a restructuring of the bank occurred. Law No. 385 was issued and extended the scope of the bank's activities to the hospitalization and handicraft sectors. The bank's capital was specified at LBP 30 billion, where government's share is 20%, with possible joining of public institutions, and the remaining 80% are to be represented by Lebanese individuals, as well as financial and banking institutions operating in Lebanon and outside.

The National Bank for Industrial and Touristic Development, through its workplan, its statutes, and mode of credit extension, aims at financing the establishment, equipment and other types of investment for the development of the productive sectors.

Its major developmental role includes:

1. Studying and evaluating projects seeking medium and long term loans.

2. Undertaking an economic assessment of the project as to its developmental qualities and a financial feasibility in order to asses the project's long term ability to recover its debt.

3. Searching for potential areas for investment opportunities in the industrial and touristic sectors, in addition to the preparation of researches and studies.

In addition to the above, the bank can engage in all kinds of operations that are allowed for investment banks, namely:

• Direct investment

• Shares acquisitions

• Buying and selling of treasury bills for its own account, as well as for others.

• Issuing medium and long term guarantees in return of adequate collateral.