VIII. Trade and Project Financing Brief description of the Lebanese Banking System Lebanon has the most liberal banking regime in the Middle East region. Bank secrecy is strictly enforced and there is no restriction on the movement of foreign currencies or capital. Lebanon has over 70 commercial banks. The government and banking industry are taking steps to raise shareholder equity and address the problem of undercapitalized banks. Some European banks and financial institutions have recently opened offices in Lebanon; Among these: Credit Lyonnais, Paribas; the Fleming and Midland Banks (U.K.) and Indosuez are interested in opening a branch or representative office in Beirut. The free foreign exchange market is determined by supply and demand. There are no restrictions imposed on currency conversions and transfers, and no foreign exchange controls affect trading. About 60 percent of international trade is financed through letters of credit, and the remaining 40 percent through direct transfers. Export Financing and Insurance Lebanon's major European partners have restored state export guarantees for their companies doing business in Lebanon. Among these, the British have resumed export credit guarantee department medium-term coverage with a ceiling of 50 million british pounds as of February 1, 1994. This coverage might be increased. France's COFACE (Compagnie Francaise pour le Commerce Exterieur) facilities are available to the private and public sectors. Germany's Hermes raised its coverage to DM 20 million per project in 1994--the ceiling being considered as a guideline. Italy's SACE provides export credit guarantees for Italian trade and for studies and project execution. Belgium's Ducroire provides export coverage for the private sector on a case-by-case basis under restrictions. Lebanon has recently signed with the Inter-Arab Guarantee Agency an export guarantee agreement to provide coverage for trade and investment between Lebanon and 21 Arab countries. Project Financing Available Project financing in Lebanon varies and is not always clearly defined. The government has foreign financing commitments for its ten-year development program worth USD 1.7 billion from grants, bilateral or multilateral loans--including, among others, the Saudi, Kuwaiti, Italian, and French governments, the World Bank, the European Investment Bank, the U.N. Development Program, the Islamic Development Bank, the Arab Fund for Economic and Social Development and the Abu Dhabi Development Fund. In other areas, the government has used build/operate/transfer (BOT) arrangements. It is also considering dollar-denominated treasury bills which will be marketed by international financial institutions. List of banks with U.S. Correspondents Adcom Bank SAL Allied Business Bank SAL Al-Mawarid Bank SAL Al-Moughtareb Bank SAL American Express Bank Ltd Arab Bank P.L.C. Banca di Roma Bank Al-Madina SAL Bank of Beirut SAL Bank of Beirut and the Arab Countries SAL Bank of Kuwait and the Arab World SAL Bank of Lebanon and Kuwait SAL Banque audi SAL (There are Bank Audi branches in New York and Los Angeles, and a representative office in Miami) Banque Beyrouth pour le Commerce SAL Banque de Credit National SAL Banque de la Bekaa SAL Banque de la Mediterranee Sal (representative office: Mediterranee investors groug-usa inc.) Banque de l'Essor Economique Libanais SAL Banque de l'Industrie et du Travail SAL Banque du Liban et d'Outre-Mer SAL Banque J. Geagea SAL Banque Joseph Lati et Fils SAL Banque Libanaise pour le Commerce SAL Banque Libano-Francaise SAL Banque Misr-Liban SAL Banque Mationale de Paris "Intercontinentale" Banque Pharaon et Chiha SAL Banque Saradar SAL Beirut Riyad Bank SAL The British Bank of the Middle East (U.S. Branch: Marine Midland Bank N.A.) Byblos Bank SAL Commercial Facilities Bank SAL Credit Bancaire SAL Credit Commercial du Moyen-Orient SAL Credit Libanais SAL Federal Bank of Lebanon SAL Fransabank SAL Future Bank SAL Habib Bank limited Infibank SAL Intercontinental Bank of Lebanon SAL Jammal Trust Bank SAL Lebanese Canadian Bank SAL Lebanese Swiss Bank SAL Lebanon and Gulf Bank SAL Litex Bank SAL Metropolitan Bank SAL Near East Commercial Bank SAL Orient Credit Bank SAL Rifbank SAL Saudi Lebanese Bank SAL Saudi National Commercial Bank Societe Bancaire du Liban SAL Societe Generale Libano-Europeenne de Banque SAL (Societe Generale New York) Societe Nouvelle de la Banque de Syrie et du Liban SAL The Syrian Lebanese Commercial Bank SAL Transorient Bank SAL Unibank SAL United Bank of Saudia and Lebanon SAL Universal bank SAL Wedge Bank Middle East SAL