Lebanon to Reduce Interest Rates on Loans for Retirees

Lebanon is set to reduce interest rates on loans for over 3.6 million retirees, enhancing their financial capabilities. The reduction is part of a broader effort to improve the living standards of retirees, who will also benefit from increased cash withdrawal limits from ATMs. The interest rates on consumer and housing loans, excluding commercial ones, are expected to decrease to 2%.

The decision comes after a meeting between the National Social Security Fund (NSSF) and the Lebanese Development Bank (BDL) on Sunday. The meeting was attended by the NSSF Director General, Hafez Addar, and the BDL General Manager, along with their respective teams. The gathering aimed to strengthen cooperation and explore ways to enhance the existing partnership, focusing on improving digital and banking services for retirees.

A committee, composed of representatives from the NSSF and BDL, has been formed to study and determine the new interest rates. The committee is expected to announce the new rates soon, which are anticipated to be more favorable than those agreed upon in December of last year. The meeting also discussed expanding cooperation areas and developing joint work mechanisms to enhance service quality and digital transformation, aligning with the principle of improving public service and bringing it closer to retirees.

This initiative is part of ongoing efforts to build effective and sustainable partnerships that prioritize retirees and respond to their expectations through higher quality, more flexible, and effective services.

**Context:** This development is significant as it addresses the financial challenges faced by a large segment of Lebanon's population, particularly in the context of the country's economic crisis. By reducing interest rates and improving access to financial services, the government aims to alleviate some of the financial burdens on retirees, who are particularly vulnerable to economic fluctuations.