Lebanon Introduces Grant Loans for Citizens to Invest in Real Estate

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Boosting Economy through Real Estate Investment

In a bid to stimulate economic growth and attract foreign investment, the Lebanese government has announced the introduction of grant loans to citizens looking to invest in real estate properties within the country.

Eligibility Criteria

The loan program is available to Lebanese citizens who want to purchase, construct, renovate, complete or revamp residential or commercial properties, including:

• Apartments
• Houses
• Offices
• Shops
• Other types of buildings

Favorable Terms

The grant loans will have favorable terms, including:

• Low interest rates
• Flexible repayment periods

These terms are expected to benefit not only individuals but also small businesses and developers who are looking to invest in Lebanon’s real estate sector.

Regulatory Limitations

However, there are some regulatory limitations that apply to transactions between banks and their affiliates. For instance:

• Banks are prohibited from engaging in activities that may create conflicts of interest, such as granting loans to board members or major shareholders without prior approval from the bank’s general assembly.
• The government is committed to supporting the banking sector and promoting foreign investment.

Challenges Facing the Banking Sector

The Lebanese banking sector has been facing several challenges in recent years, including a sovereign debt default and an economic crisis. Despite these challenges, the government remains committed to supporting the sector and promoting foreign investment.

Improving Consumer Protection Rules

In addition to the grant loan program, the government is also working to improve consumer protection rules in the banking sector. A new law aimed at protecting consumers has been introduced, which includes provisions related to:

• Communication guidelines for banks and financial institutions

Evolving Regulatory Policy

The legal and regulatory policy is expected to continue evolving over the next few years, with a focus on addressing the effects of the economic crisis and promoting foreign investment.

By introducing these grant loans and improving consumer protection rules, the Lebanese government is taking steps to support the real estate sector and promote economic growth in the country.