Published 19:33 IST, August 6th 2020

Beirut explosion: Lebanese central bank directs institutions to give zero-interest loans

Lebanon's central bank on August 6 confirmed that it has instructed Lebanese banks to give loans to blast victims on zero percent interest.

World News
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Lebanon's central bank on August 6 confirmed that it has instructed Lebanese banks to give loans to blast victims on zero percent interest. Lebanon's central bank while confirming earlier reports from social media said that nation's banks should issue these loans to people and companies who want to rebuild their houses or businesses regardless of their account limits. The apex bank has instructed financial institutions to give interest-free loans for five years to anyone wanting to rebuild their houses or businesses.

Read: Beirut Explosion: French President Visits Lebanon, Calls For International Assistance

According to reports, the top bank will also sell dollars at the rate of one US dollar for 3,900 Lebanese pounds to businesses who are looking to import aluminum, wood, or glass, items necessary in rebuilding the shattered city of Beirut. As per reports, 8,000 Lebanese pounds sell for one US dollar in the black market, way above what the central bank is offering to importers at the moment. The central bank's official website shows Lebanese pound fixed at 1507.5 LBP per dollar, which is an artificial peg and has been set since 1997 because of mismanagement and surging foreign debt that has tanked the country's actual currency value.

Read: Beirut Explosion: Prince Charles And Duchess Of Cornwall Offer Condolences To Lebanon

Beirut explosion

Lebanon's capital Beirut was rocked by an explosion on August 4, killing at least 135 people and injuring 4,000 others. The incident that took place at Beirut post resulted in the government declaring a two-week state of emergency in the city. An investigation into the blast is being carried out, however, President Michel Aoun and Prime Minister Hassan Diab have claimed that the explosion was caused by over 2,000 tonnes of ammonium nitrate, that was stored unsafely in a warehouse for six years.