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Foreign currency reserves $22 billion at-hand effectively

Mar 11

Foreign currency reserves $22 billion at-hand effectively

No ‘Haircut’ and fuel tax VAT to be increased on luxury goods

The Minister of Finance, Ghazi Wazni, said that the foreign currency reserves at the Central Bank are $29 billion, of which the BDL has loaned $7 billion to banks for their external and internal obligations. This effectively brings at-hand reserves to $22 billion.

On the reforms he said: “Electricity is the main source of financial bleeding and will be one of the most prominent reforms, as well as reducing interest rates, and judicial appointments.”

Wazni said: “Some of the not-yet final proposals to reduce public expenditures require reducing the deficit of Electricité du Liban, such as raising tariffs but not on low-income people. It also includes raising VAT on luxury goods, and raising fees on some goods, but it will not impose new taxes on gasoline.”

He said: “There will be no ‘Haircut’ on large depositors, and there are many measures to address the situation of banks. Mergers are a prerequisite in addition to pumping $20 billion to $25 billion from abroad.”

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