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1Week 24 June 09 - June 15, 2014
JUNE 09 - JUNE 15, 2014
WEEK 24
Bank Audi sal - Group Research Department - Bank Audi Plaza - Bab Idriss - PO Box 11-2560 - Lebanon - Tel: 961 1 994 000 - email: [email protected]
CONTACTS
RESEARCH
Treasury & Capital Markets
Micky Chebli
(961-1) 977419
Nadine Akkawi
(961-1) 977401
Bechara Serhal
(961-1) 977421
Private Banking
Toufic Aouad
(961-1) 329328
Corporate Banking
Khalil Debs
(961-1) 977229
Marwan Barakat
(961-1) 977409
Jamil Naayem
(961-1) 977406
Salma Saad Baba
(961-1) 977346
Fadi Kanso
(961-1) 977470
Sarah Borgi
(961-1) 964763
Gerard Arabian
(961-1) 964047
Nivine Turyaki
(961-1) 959615
LEBANON MARKETS: WEEK OF JUNE 09 - JUNE 15, 2014
The LEBANON WEEKLY MONITOR
Economy___________________________________________________________________________
p.2 DRAFT 2014 BUDGET PUTS PUBLIC FINANCE DEFICIT AT 10.7% OF GDP The Ministry of Finance has just finalized the 2014 draft budget, which it submitted to the Council of
Ministers for discussion, entailing a public finance deficit of 10.7% of GDP.
Also in this issuep.3 EIB lends the banking sector US$ 164 million to boost SMEs in Lebanon
p.3 Internet infrastructure upgrade to be effective as of July
p.4 Value of Kafalat guarantees up by 6.0% in the first five months of 2014
Surveys___________________________________________________________________________
p.5 LEBANON’S POTENTIAL GDP GROWTH AT 4% IN A BENIGN ENVIRONMENT, AS
PER S&P Standard and Poors (S&P) has published an update supplementing a previous affirmation of Lebanon’s
sovereign rating at B-/stable/B.
Also in this issuep.6 Lebanon retains its global rank in the World’s Freedom of the Press
Corporate News___________________________________________________________________________
p.7 FRANSABANK’S TOTAL ASSETS UP BY A YEARLY 2.1% TO US$ 17.4 BILLION AT
END-MARCH 2014 Fransabank’s consolidated net profits amounted to US$ 33.7 million in the first quarter of 2014,
down by 14.1% from US$ 39.2 million in the same period of last year, according to Bankdata Financial
Services.
Also in this issuep.8 Crédit Libanais’ net profits down by a yearly 3.5% to US$ 15.6 million in the first quarter of 2014
Markets In Brief___________________________________________________________________________
p.9 CENTRAL BANK’S FOREIGN ASSETS AT THEIR HIGHEST LEVELS Lebanese capital markets continued to witness a foreign demand on the Eurobond market, a rise in
prices on the equity market and a balanced activity on the FX market. In details, the foreign appetite
for Lebanese debt papers persisted during this week given the attractiveness of Lebanese debt papers
as compared to other papers in the region and in other emerging markets and as Lebanon’s weighting
in JP Morgan indices has been lifted recently. The average spread contracted further by 9 bps to 309
bps and Lebanon’s five-year CDS spread shrank by 6 bps to 334 bps, its lowest level in 3 years. At the
level of the equity market, the total trading value amounted to US$ 4.5 million, below the average
weekly trading value of US$ 7.9 million since the beginning of the year 2014, while the price index
increased by 1% week-on-week. On the FX market, the commercial demand for the US Dollar was
adequately met by offer, while the LP/US$ interbank rate ranged between LP 1,511 and LP 1,514. It
is worth recalling that the BDL’s foreign assets reached US$ 36.4 billion at end-May 2014, which is
formed of prime liquid placements at international banks, as the Central Bank has been able to sell the
bulk of its sovereign Eurobond holdings.
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ECONOMY______________________________________________________________________________
DRAFT 2014 BUDGET PUTS PUBLIC FINANCE DEFICIT AT 10.7% OF GDP
The Ministry of Finance has just finalized the 2014 draft budget, which it submitted to the Council of
Ministers for discussion. The draft budget entails a projected public finance deficit at 10.7% of GDP for
2014, compared to an actual deficit of 9.5% of GDP in 2013. The draft law which still needs to be approved
by the cabinet and then endorsed by the parliament for it to become effective, would be, if ratified, the
first budget law to be applied in nine years since 2005.
According to the 2014 draft budget, the public finance deficit is expected to reach US$ 5.09 billion
compared to US$ 4.22 billion registered in 2013, an increase of 20.6%. Accordingly, the deficit to GDP ratio
would increase by 1.2%, from 9.5% in 2013 to 10.7% of GDP in 2014. The ratio of deficit to expenditures,
on the other hand, is expected to rise to 34.9% in 2014, up from 30.9% in 2013.
In details, public finance expenditures are expected to increase by 6.6%, from US$ 13.64 billion spent
in 2013 to US$ 14.55 billion budgeted for 2014. Wages are expected to account for circa 37% of
expenditures, at US$ 5.39 billion, against US$ 4.29 billion in 2013. The rise is mainly due to new hiring
and the consequent related expenditures. As to debt service, it is expected to account for around 27% of
public finance expenditures. It is estimated at US$ 3.91 billion for the year 2014, up from US$ 3.79 billion
in 2013. Moreover, an amount of US$ 2.03 billion has been accounted for EDL, equivalent to the amount
spent in 2013. It is worth noting that this account will be considered the ceiling for amounts transferred
as credit from the treasury to EDL.
Overall, current expenditures are estimated at US$ 13.12 billion in 2014, at 90.2% of total expenditures.
Current expenditures are up by 10.1% from US$ 11.92 billion spent in 2013. Capital expenditures, on the
other hand, accounted for 9.8% of the planned expenditures for 2014, at US$ 1.42 billion.
As to public finance revenues, they are estimated at US$ 9.46 billion, up from US$ 9.42 billion received
in 2013, a slight increase of 0.4%. Tax revenues are estimated at US$ 7.18 billion, compared to US$ 6.71
billion collected in 2013. Non-tax revenues have been estimated at US$ 2.28 billion, compared to US$
2.17 billion in 2013. The relative stagnation in public revenues is tied to the sluggish performance of the
Lebanese economy in general.
PUBLIC FINANCE INDICATORS
Source: Ministry of Finance
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According to the concluding statement of the IMF Article IV Consultation mission report issued last
month, passing a budget for 2014 is a necessary and credible initial step to anchor fiscal policy. A sound
budget—covering all government expenditure and revenue plans—would crystallize the government’s
policy intentions and restore credibility in fiscal policy. As per the IMF, there is a need to move away
from the current fragmented approach to fiscal policymaking—as shown by the proposal on the salary
scale adjustment for the public sector—and consider fiscal measures in the context of a comprehensive
budgetary framework.
Among IMF recommendations, electricity tariffs—unchanged since 1996, when global fuel prices were a
fraction of current levels—should be gradually increased to cost-recovery levels while protecting lower-
tier consumers. According to the Fund, a comprehensive revenue package could include the introduction
of a capital gains tax on real estate transactions; an increase in the withholding tax on interest income; a
rise in the corporate income tax rate; the immediate removal of the VAT exemption on gasoline, followed
later on by a gradual increase in the overall VAT rate across the board, as multiple VAT rates should be
avoided.
The IMF believes that improvements in fiscal management should complement the proposed measures.
There is scope for more transparency of government spending and its funding. There is also scope to
broaden tax bases, particularly for the VAT and income taxes, strengthen revenue administration, and
reduce tax evasion at large.
_____________________________________________________________________________EIB LENDS THE BANKING SECTOR US$ 164 MILLION TO BOOST SMES IN LEBANON
The European Investment Bank (EIB) has recently signed four loans worth US$ 163.7 million to be
extended to Lebanese banks with the target of boosting SMEs in the country.
According to the EIB, the Lebanese financial sector and the Lebanese economy in general present good
investment opportunities.
Byblos Bank and Fransabank each received loans worth US$ 60.93 million from the the EIB. The First
National Bank of Lebanon will receive an equity injection of US$ 14.89 million from the EIB in the form of
preferred shares, and the private equity fund Euromena III will receive US$ 27.08 million.
Based on experience, the EIB had consciously decided against stipulating which sectors should benefit
from the loans. Few years ago, the EIB decided to emphasize the hospitality sector because it believes in
the importance of the tourism industry. The EIB insists that the loan recipients practice good governance
and ensure that they adhere strictly to international standards.
In EIB’s view, for the time being, there is a need for the SMEs to be supported because there is lot of
uncertainties in the market. At the same time, the EIB was encouraged by how Lebanese SMEs had
weathered the economic crisis and regional instability without disruption. Also, the EIB cited how its
clients in Lebanon, both private banks and the Lebanese government, had repaid their loans on time.
According to the EIB, this reflects the fact that Lebanese banks and the Central Bank know how crucial
the financial credibility is for Lebanon.
_____________________________________________________________________________INTERNET INFRASTRUCTURE UPGRADE TO BE EFFECTIVE AS OF JULY
According to the Telecoms Ministry, Lebanon’s Internet service providers will have successfully completed
the necessary upgrades to their infrastructure by the end of June.
This would enable them to boost the speed and quota for their existing customers as per the new
data plans designed by the ministry. As of July 1st, the entry level DSL plan, still priced at US$ 16, will
be upgraded to 2 Mbps with a 40 gigabyte cap, compared with the previous 1 Mbps and 4 gigabytes
of data. For US$ 50, subscribers will get the 2 Mbps with an unlimited download plan compared to a
previous cap of 20 gigabytes. The 4 Mbps plan will see its price drop to US$33, from US$50, and have
its usage increased to 50 gigabytes, from 25 gigabytes. The 6-8 Mbps plan will now cost US$ 43 and
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WEEK 24
include 60 gigabytes of data. The charge for exceeding the data limit on each plan will now be US$ 1.3
per gigabyte, down from the current US$ 4.
By June 20, providers will have completed all the necessary technical upgrades to upgrade the data plans
of all their subscribers. They are currently in the final phase of upgrading their switch nodes, routers and
servers along with other related technical improvements to their infrastructure to secure the required
increase in connection speed.
The ministry has also sent a request to Ogero asking it to carry out the necessary upgrades before July 1st
so that subscribers can actually enjoy the promised improvement in connection. Besides managing the
upgrades at services points, Ogero needs to increase the capacity for internets service providers.
It is worth noting that the average internet speed in Lebanon currently stands at 2.5 Mbps, according to
the international Household Download Index by U.S. broadband tester Ookla, which ranks the country
174th internationally.
____________________________________________________________________________VALUE OF KAFALAT GUARANTEES UP BY 6.0% IN THE FIRST FIVE MONTHS OF 2014
Figures released by the Kafalat Corporation indicate that loans extended to small and medium sized
companies under the guarantee of Kafalat totaled US$ 44.7 million in the first five months of 2014, up by
6.0% from the year before. Meanwhile, the aggregate number of guarantees amounted to 356 in the first
five months of the year, up by 15.2% from 309 guarantees given in the same period of 2013.
Agriculture and industry captured the lion’s share when it comes to the number of extended guarantees
in the first five months of 2014, with 181 (or 50.8% of the total number of guarantees) and 121 guarantees
(or 34.0% of the total), respectively. Tourism came in next with 32 guarantees (9.0%), followed by
handicrafts with 12 guarantees (3.4%), and by specialized technologies with 10 guarantees (2.8%).
As for the distribution of guarantees by area, Mount Lebanon accounted for the biggest share of given
guarantees, with 151 guarantees (42.4%), followed by the Bekaa with 73 guarantees (20.5%), Nabattieh
with 39 guarantees (11.0%), the North with 38 guarantees (10.7%), the South with 36 guarantees (10.1%),
and Beirut with 12 guarantees (5.3%).
BREAKDOWN OF KAFALAT GUARANTEES
Sources: Kafalat, Bank Audi's Group Research Department
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SURVEYS_____________________________________________________________________________LEBANON’S POTENTIAL GDP GROWTH AT 4% IN A BENIGN ENVIRONMENT, AS PER S&P
Standard and Poors (S&P) has published an update supplementing a previous affirmation of Lebanon’s
sovereign rating at B-/stable/B. According to the update, the Lebanese economy is expected to grow at
1.5% in 2014, whereas a potential growth rate of 4.0% could have been achieved in a benign domestic
and external political environment.
The potential for upside to the base in S&P’s scenario is in the case where the external security environment
stabilizes or of smooth elections this year boosts investor and consumer confidence. Meanwhile, the
regional environment continues to weigh heavily on Lebanon’s growth prospects, depressing its service-
driven economy which is highly sensitive to swings in consumer and business confidence.
S&P estimates Lebanon’s GDP per capita at under US$ 10,000 for 2014. Real GDP per capita growth is
forecasted to average 0.8% annually in the period between 2014 and 2017, compared with 7.2% between
the years 2007 and 2010.
The update cites the drop in tourists’ arrivals at 7% in 2013, following another drop of 17% in 2012. S&P
also mentions the electricity sector which it considers both a drain on fiscal resources, with subsidies
to EDL at over 4% of GDP, and long-standing barrier to sustainable growth. The installed generating
capacity is at its peak covering only about 60% of demand. According to the World Bank, the increase in
demand caused by the influx of refugees is adding stress to an already weak system.
LEBANON EXTERNAL INDICATORS
Sources: S&P
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_____________________________________________________________________________
LEBANON RETAINS ITS GLOBAL RANK IN THE WORLD’S FREEDOM OF THE PRESS
Freedom House issued its latest report on the World’s Freedom of the Press in which Lebanon’s global
rank remained the same as the one of 2013 at the 112th position globally.
The 2014 index, which provides analytical reports and numerical ratings for 197 countries and territories,
continues a process conducted since 1980 by Freedom House. The findings are widely used by
governments and donor agencies, international organizations, academics, activists, and the news media.
Countries are given a total press freedom score from 0 (best) to 100 (worst) on the basis of a set of 23
methodology questions divided into three subcategories, and are also given a category designation of
“Free,” “Partly Free,” or “Not Free".
Lebanon received again a score of 53 which places it amongst countries with a "partly free" press.
Lebanon’s score was equal to that of Tunisia and Moldova. It was outperformed by Seychelles, Niger, and
Nicaragua while it ranked right ahead of Fiji, Columbia, and Bangladesh. Regionally, Lebanon came first
along with Tunisia while it surpassed Kuwait, Algeria, and Libya.
RANKING OF MENA COUNTRIES IN 2014 FREEDOM OF THE PRESS
Sources: Freedom House, Bank Audi's Group Research Department
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CORPORATE NEWS_____________________________________________________________________________
FRANSABANK’S TOTAL ASSETS UP BY A YEARLY 2.1% TO US$ 17.4 BILLION AT END-
MARCH 2014
Fransabank’s consolidated net profits amounted to US$ 33.7 million in the first quarter of 2014, down by
14.1% from US$ 39.2 million in the same period of last year, according to Bankdata Financial Services. It
is worth noting that net provisions for credit losses reached US$ 10.9 million in the first quarter of 2014,
against US$ 5.9 million a year earlier.
Net interest income rose by 13.0% annually from US$ 79.0 million in the first quarter of 2013 to US$
89.3 million in the same period of this year, while net fee and commission income declined by 8.3%
year-on-year to attain US$ 12.8 million in the aforementioned period of 2014. Subsequently, total
operating income amounted to US$ 112.2 million in the first quarter of 2014, almost unchanged from
the corresponding quarter of 2013.
Total operating expenses increased by 8.3% annually, from US$ 57.7 million in the first three months of
2013 to US$ 62.5 million in the first three months of 2014, of which staff expenses amounting to US$ 38.6
million, up by 3.8% year-on-year, and administrative and other operating expenses totaling US$ 19.7
million, up by a yearly 19.3%.
The bank's cost-to-income ratio rose from 51.2% in the first quarter of 2013 to 54.3% in the same period
of this year.
Total assets stood at US$ 17.4 billion at end-March 2014, up by 2.1% from US$ 17.0 billion at end-2013.
Loans to customers went up by 1.6% from US$ 5.3 billion at end-2013 to US$ 5.4 billion at end-March
2014.
Customer deposits amounted to US$ 14.2 billion at end-March 2014, up by 0.7% from US$ 14.1 billion at
end-2013. Shareholders’ equity totaled US$ 1,685 million at end-March 2014, against US$ 1,652 million
at end-2013.
The bank's return on average assets ratio stood at 0.78% in the first quarter of 2014, versus 0.98% a year
earlier. Its return on average equity ratio reached 7.83% in the first quarter of 2014, against 10.01% a year
earlier.
FRANSABANK'S MAJOR FINANCIAL AGGREGATES (US$ BILLION)
Sources: Bankdata Financial Services, Bank Audi's Group Research Department
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_____________________________________________________________________________
CRÉDIT LIBANAIS’ NET PROFITS DOWN BY A YEARLY 3.5% TO US$ 15.6 MILLION IN THE
FIRST QUARTER OF 2014
Crédit Libanais posted net profits of US$ 15.6 million in the first quarter of 2014, down by 3.5% from US$
16.2 million in the same period of 2013, according to Bankdata Financial Services.
Net interest income amounted to US$ 33.4 million in the aforementioned period of 2014, up by 12.5%
from US$ 29.7 million recorded in the first quarter of 2013. Net fee and commission income increased
from US$ 8.7 million in the first three months of 2013 to US$ 9.3 million in the same period of 2014.
Net operating income attained US$ 45.0 million in the first quarter of 2014, up by 2.2% from the
corresponding period of last year. Total operating expenses increased by 6.1% year-on-year to US$ 27.3
million in the first quarter of 2014, of which staff expenses reaching US$ 16.0 million, 4.8% higher than
those reported in the same period of 2013, and administrative and other operating expenses reaching
US$ 9.6 million, 10.5% higher than those during the same period of 2013.
Crédit Libanais’ cost-to-income ratio increased from 57.3% in the first quarter of 2013 to 58.9% in the
corresponding period of 2014.
Credit Libanais’ assets totaled US$ 8.6 billion at end-March 2014, up by 2.3% from end-2013. Net loans
and advances stood at US$ 2.7 billion at end-March 2014, up from US$ 2.6 billion at end-2013. The bank’s
gross doubtful loans to gross loans ratio moved down from 3.42% at end-2013 to 3.31% at end-March
2014. The loan loss reserves to doubtful loans ratio inched up slightly, moving from 70.0% at end-2013 to
71.7% at end-March 2014.
Customers’ deposits amounted to US$ 7.3 billion at end-March 2014, up by 1.9% from the total recorded
at end-2013. Shareholders’ equity totaled US$ 701.3 million at end-March 2014, up from US$ 686.4 million
at end-2013.
Crédit Libanais’ return on average assets ratio declined from 0.81% in the first quarter of 2013 to 0.74% in
the same period of 2014. Its return on average equity ratio was also down from 11.32% in the first quarter
of 2013 to 8.71% in the same period of 2014.
NET PROFITS (US$ MILLION)
Sources: Bankdata Financial Services, Bank Audi's Group Research Department
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CAPITAL MARKETS_____________________________________________________________________________
MONEY MARKET: MONEY SUPPLY (M4) EXPANDS BY LP 647 BILLION WEEK-ON-WEEK
The overnight rate rose to 5% over the first three days of the week, due to technical reasons related to
the CNSS’ renewal of its time deposits. Yet, the said rate slipped back to its low official level of 2.75% set
by the Central Bank of Lebanon towards the end of the week, with the return of abundant local currency
liquidity to the market. As to Certificates of Deposits, the Central Bank of Lebanon sold this week LP
2 billion in the 60-day category. Accordingly, total subscriptions since the beginning of the year 2014
reached LP 141 billion and were distributed as follows: LP 86 billion in the 45-day category and LP 55
billion in the 60-day category. Interest rates on the 45-day and 60-day categories remained unchanged
at 3.57% and 3.85% respectively.
At the monetary aggregates level, figures for the week ending 29th of May 2014 released this week
showed a rise in local currency deposits of LP 519 billion, as a result of an increase of LP 201 billion in LP
time deposits and a growth of LP 318 billion in LP demand deposits week-on-week. Deposits in foreign
currencies increased by US$ 74 million. These weekly variations compare to an average weekly rise of LP
65 billion for LP deposits, and an average weekly growth of US$ 76 million for foreign currency deposits
since the beginning of the year 2014. Total money supply in its large sense (M4) expanded by LP 647
billion. This compared to an average weekly growth of LP 221 billion since the beginning of the year 2014.
On a cumulative basis, money supply in its large sense (M4) widened by LP 5,481 billion since the
beginning of the year 2014. This is the result of a rise in local currency denominated time deposits of
LP 1,862 billion, an increase in foreign currency deposits of LP 2,801 billion (the equivalent of US$ 1,858
million), a contraction in money supply (M1) of LP 281 billion, and a growth in Treasury bills held by the
public of LP 1,100 billion.
_____________________________________________________________________________
TREASURY BILLS MARKET: CONTINUOUS FOREIGN APPETITE FOR SHORT-TERM
PAPERS
Foreigners continued to rollover their maturing papers on the primary Treasury bills market and to inject
fresh money in relatively low volumes to subscribe in short-term papers. The latest auction’s results (June
12, 2014) showed that the average yields on the one-year, two-year and three-year categories remained
stable at 5.35%, 5.84% and 6.50% respectively. Also, the auction results for value date 5th of June 2014
released by the Central Bank of Lebanon showed that total subscriptions amounted to LP 184 billion
and were distributed as follows: LP 62 billion in the three-month category, LP 44 billion in the six-month
category, and LP 78 billion in the five-year category. These compare to maturities of LP 57 billion, resulting
in a nominal surplus of LP 127 billion.
INTEREST RATES
Source: Bloomberg
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TREASURY BILLS
Sources: Central Bank of Lebanon, Bloomberg
_____________________________________________________________________________
FOREIGN EXCHANGE MARKET: BALANCED ACTIVITY CONTINUES TO REIGN OVER
The foreign exchange market maintained its balanced activity during this week. In fact, the commercial
demand for the US Dollar was adequately met by offer. Within this context, commercial banks traded the
green currency at a rate hovering between LP 1,511 and LP 1,514 versus LP 1,509-LP 1,514 in the previous
week. Meanwhile, the Central Bank of Lebanon remained on the sidelines throughout the week.
EXCHANGE RATES
Source: Bank Audi’s Group Research Department
_____________________________________________________________________________
STOCK MARKET: 1% RISE IN BSE PRICE INDEX
Activity was relatively weak on the Beirut Stock Exchange during this week. The total trading value was
limited to US$ 4.5 million versus US$ 10.1 million and an average weekly trading value of US$ 7.9 million
since the beginning of the year 2014. The average daily trading value fell from US$ 2,021 thousand last
week to US$ 896 thousand this week, which resulted into a 55.6% drop in the trading volume index
to reach 38.83. The total number of traded shares decreased from 975,554 shares last week to 483,212
shares this week. As far as prices are concerned, the BSE price index went up by 1.0% to 111.28.
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EUROBONDS INDICATORS
Source: Bank Audi’s Group Research Department
AUDI INDICES FOR BSE
Sources: Beirut Stock Exchange, Bank Audi’s Group Research Department
Banking shares captured 77.24% of the total trading value. Bank Audi’s “listed” share price surged by
5.4% to US$ 6.43. Bank Audi GDR’s price closed 0.6% higher at US$ 6.60. BLOM’s “listed” share price stood
unchanged at US$ 8.80. BLOM’s GDR price rose by 1.4% to close at US$ 9.40. Byblos Bank’s “listed” share
price closed 1.3% higher at US$ 1.60. Solidere shares accounted for 21.5% of total activity. Solidere “A”
share price edged up by 0.4% to US$ 13.55 and Solidere “B” share price went up by 1.2% to US$ 13.63.
The Beirut Stock Exchange’s weekly performance compared to a 1.0% decline in broader Arabian markets’
share prices (as per S&P Pan-Arab Composite Index) and a 0.3% increase in broader emerging markets’
share prices (as per S&P Emerging Frontier Super Composite Index).
_____________________________________________________________________________
BOND MARKET: FURTHER CONTRACTION IN SPREADS
The Eurobond market continued to attract a foreign interest during this week, given the attractiveness
of Lebanese debt papers as compared to other papers in the region and in other emerging markets and
as Lebanon’s weighting in JP Morgan indices has been lifted recently. Papers maturing in October 2022
attracted a decent international bid. This was met by some local and foreign offer. Also, papers maturing
in November 2026 were in foreign investor’s radar screens, noting that the international demand has
been adequately absorbed by a local offer. In parallel, papers maturing in November 2027 were locally
traded.
Within this context, the weighted average bond yield declined by 2 bps to 4.65%, and the average spread
contracted by 9 bps to 309 bps amidst a tiny decline in Lebanese yields and an increase in international
benchmark yields. For instance, the five-year US Treasury yield rose from 1.62% last week to 1.67% this
week. As to the cost of insuring debt, Lebanon’s five-year CDS spread continued to hover between 320
bps and 340 bps during this week.
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INTERNATIONAL MARKET INDICATORS
Sources: Bloomberg, Bank Audi's Group Research Department
___________________________________________________________________________DISCLAIMER
The content of this publication is provided as general information only and should not be taken as an
advice to invest or engage in any form of financial or commercial activity. Any action that you may take
as a result of information in this publication remains your sole responsibility. None of the materials
herein constitute offers or solicitations to purchase or sell securities, your investment decisions should
not be made based upon the information herein.
Although Bank Audi Sal considers the content of this publication reliable, it shall have no liability for
its content and makes no warranty, representation or guarantee as to its accuracy or completeness.
