ECONOMIC CONTRIBUTION
Activities
SECTORIAL SUBSIDIES
Bank Audi’s activity in the realm of BDL subsidies represent nearly
50% of all banks’ participation under the program with transactions
facilitated north of USD 1 billion. Since November 2019, and under
BDL Circular 530 referring to oil, pharmaceutical and wheat
subsided, BDL Circular 535 for medical supplies subsidy, as well as
BDL Circulars 556 and 564 for industrial support and food basket
subsidy, an aggregated amount of USD 1,065,346,000, representing
1,980 transactions have been facilitated by Bank Audi.
Supporting Lebanese Manufacturing Industries
As the financial crisis hit the Lebanese economy, the manufacturing
industry was heavily impacted. The COVID-19 pandemic that followed
also aggravated the situation. All eyes were on reviving and developing
key sectors such as agriculture and industry, the latter becoming a key
pillar of all rescue and recovery plans discussed.
It is worth noting that in 2019, industrial exports accounted for 95% of
total Lebanese exports amounting to USD 3.7 billion (according to the
Investment Development Authority of Lebanon - IDAL). This figure might
seem insignificant in comparison to the size and volume of imports,
USD 19.2 billion.
To assist in countering the crisis effect, Bank Audi launched in May 2020 an initiative targeting its 500+ manufacturing clients with the main objective of supporting them throughout these critical times. The targeted companies are well diversified in regards to size, business and location. The Bank’s initiative is based on:
The Minister of Industry praised on twitter the initiative of Bank Audi and invited other banks to follow. The Association of Banks of Lebanon responded to the request by adopting the main terms of the initiative with minor deviations.
To assist in countering the crisis effect, Bank Audi launched in May 2020 an initiative targeting its 500+ manufacturing clients with the main objective of supporting them throughout these critical times. The targeted companies are well diversified in regards to size, business and location. The Bank’s initiative is based on:
- Reducing debtor interest rates.
- Rescheduling loan repayments beyond the Central Bank’s initiative.
- Providing additional financial facilities for business continuity and employee payroll.
- Suspending legal measures against defaulting firms.
The Minister of Industry praised on twitter the initiative of Bank Audi and invited other banks to follow. The Association of Banks of Lebanon responded to the request by adopting the main terms of the initiative with minor deviations.
Bank Audi has started contacting companies, namely
corporate, commercial and SME clients operating in
the industrial manufacturing sector and that have
no exports or external shareholder support. The
feedback is very positive as this initiative helps lessen
the cashflow burden on clients, especially with the
decrease of interest rates and the rescheduling of
repayments.
Jean Traboulsi
Head of Marketing
EBRD SUPPORTS TRADE IN LEBANON
Strengthening trade from and within Lebanon, the Trade Facilitation
Programme (TFP) of the European Bank for Reconstruction and
Development (EBRD) provided a USD 65 million trade finance line to
Bank Audi, making it the third issuing bank in Lebanon.
This agreement allows Bank Audi to benefit from EBRD’s trade finance guarantees which cover the political and commercial payment risk of trade transactions. The facility will support regional integration through trade and increased access to finance for importing and exporting firms in Lebanon, especially small and medium-sized enterprises.
Launched in 1999, the EBRD’s TFP aims to promote foreign trade to, from and among the EBRD regions. Through the Programme, the EBRD has financed more than 27,000 foreign trade transactions for a total of more than €22.5 billion. Currently, over 125 issuing banks in 30 countries participate in the Programme, together with over 800 confirming banks and their subsidiaries around the world.
This agreement allows Bank Audi to benefit from EBRD’s trade finance guarantees which cover the political and commercial payment risk of trade transactions. The facility will support regional integration through trade and increased access to finance for importing and exporting firms in Lebanon, especially small and medium-sized enterprises.
Launched in 1999, the EBRD’s TFP aims to promote foreign trade to, from and among the EBRD regions. Through the Programme, the EBRD has financed more than 27,000 foreign trade transactions for a total of more than €22.5 billion. Currently, over 125 issuing banks in 30 countries participate in the Programme, together with over 800 confirming banks and their subsidiaries around the world.
HUMANITARIAN PAYMENT SOLUTION
Business practices took in consideration the Bank’s CSR objectives when
approaching current market trends.
In this regard and in the actual economic situation, we strengthened our relations with international humanitarian organisations, as well as with local NGOs, providing advice and financial solutions in light with the growing need for cash assistance to families in need.
In fact, Bank Audi has a sound experience in advising and assisting international organisations and NGOs to find the appropriate solutions to ensure transparent and smooth end-to-end payments to organisations’ employees, partners, suppliers and service providers preserving the freshness of fund.
Bank Audi built a payment model enabling NGOs to implement cash assistance programs preserving to a high extent ultimate beneficiary purchasing power. The cash assistance payment model integrates solutions for the arising safety and security challenges facing ultimate beneficiaries at cashpoints.
Account
The External account is an account that allows its holder to receive external funds from abroad through our correspondent banks or from another External Account while preserving the freshness of funds.
Prepaid Card
A program that enables us to cater for NGO beneficiaries. These cards allows the beneficiary either to withdraw cash and get access to their salaries/donations from an ATM machine or to purchase via POS/Ecommerce at merchants.
The card can be catered and designed according to the NGO program, offering consumer needs and business requirements.
The system’s backend is based on micro services that integrate with all the different agents needed in a specific solution.
This solution has a civic role since it targets the unbanked population.
Cash over the Counter
Is a tool used to pay cash over the counter to beneficiaries, suppliers, volunteers, partners etc. who are not holding accounts. We call this product Telegraphic Transfer (TT).
In this regard and in the actual economic situation, we strengthened our relations with international humanitarian organisations, as well as with local NGOs, providing advice and financial solutions in light with the growing need for cash assistance to families in need.
In fact, Bank Audi has a sound experience in advising and assisting international organisations and NGOs to find the appropriate solutions to ensure transparent and smooth end-to-end payments to organisations’ employees, partners, suppliers and service providers preserving the freshness of fund.
Bank Audi built a payment model enabling NGOs to implement cash assistance programs preserving to a high extent ultimate beneficiary purchasing power. The cash assistance payment model integrates solutions for the arising safety and security challenges facing ultimate beneficiaries at cashpoints.
Account
The External account is an account that allows its holder to receive external funds from abroad through our correspondent banks or from another External Account while preserving the freshness of funds.
Prepaid Card
A program that enables us to cater for NGO beneficiaries. These cards allows the beneficiary either to withdraw cash and get access to their salaries/donations from an ATM machine or to purchase via POS/Ecommerce at merchants.
The card can be catered and designed according to the NGO program, offering consumer needs and business requirements.
The system’s backend is based on micro services that integrate with all the different agents needed in a specific solution.
This solution has a civic role since it targets the unbanked population.
Cash over the Counter
Is a tool used to pay cash over the counter to beneficiaries, suppliers, volunteers, partners etc. who are not holding accounts. We call this product Telegraphic Transfer (TT).
The disclosed information is relevant for the period ending 2020
