|  | | | | BBAC subsidized loan
Being a prominent commercial bank in Lebanon, BBAC participates with the Central Bank in its efforts to activate the economic cycle. The Central Bank supports by 7 % or 5 % the debit interest charged to the loan. This loan is tailored to meet the needs of companies that are involved in the industrial, agricultural, and tourism, as well as high technology, programming, and craftsmanship sectors in Lebanon. The loan finances an investment that varies between 50 Million to 15 Billion LBP (35,000 to 10 million USD), settled over a time period of 5 to 7 years with a grace period not exceeding 2 years, during which the settled amount must not exceed 15 % of the loan. The interest is calculated and revised on a quarterly basis according to the loan amount. If the amount is less or equal to 5 billion LP, the interest is calculated using the yield of 2-year treasury bonds minus 6 %, or the Libor for three months if the amount is given in dollars. Otherwise, if it is greater than 5 billion LP, we consider the yield of 2-year treasury bonds minus 4 %, or the Libor for three months plus 2 % when it is given in USD. The client must provide the bank with a feasibility study concerning the project at hand, as well as audited balance sheets for three consecutive years. The client must also give the real estate collateral on the condition that its value is not less than 165 % of the loan amount, based on bank estimation. Moreover, he/she must present an insurance policy that covers all risks that may be encountered during the project, while holding the bank as the only beneficiary.
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