The World Bank has granted Lebanon two loans of $100 million US dollars each at Libor rates

The World Bank has granted Lebanon two loans of $100 million US dollars each at Libor rates provided some specific reform measures are taken. This goes to prove what we have been saying all along (See our blog of June 26,2007 and Scenario III/Exporting the Debt):

"It is possible to reprofile most of our National Debt of forty billion Dollars if we prove to the International Community that we are serious about our Reform Program. We can bring down the interest rate on most of the $40 billion by half, and save some 2,500 billion of Lebanese pounds in interest per year."

See below the terms of the two loans:

NEW LOANS FROM THE WORLD BANK
1. Size of the loan: $100 million in one disbursement
2. Coupon payments:
· Variable: LIBOR plus fixed spread
· Interest is payable on April 15 and October 15 of each year
· Maturity and Repayment schedule: The loan has a 15 year maturity and a 5 year grace period. Principal repayments will be on April 15 and October 15,

Requirements from the borrower:

1. Reform of the Energy Sector
2. Improving the Business Climate.
3. Social Protection Reforms.
4. Modernizing Public Financial Management.