Reviving lending

The Central Bank (BDL) continued to get more involved in lending to the State last year, while the banks’ credit to the private sector declined. This will change in the near future, as interest rates are starting to drop, and as BDL reduces its involvement in lending the public sector.

T-BILLS AT MARKET RATES

The recent understanding among banks to put a ceiling on interest rates could trigger the private sector’s demand for bank loans and thus aid in ending the slump in private sector lending.