Employees count money at the Central Bank in Beirut, Monday, Sept. 16, 2013. (The Daily Star/Mohammad Azakir)
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Citi Research warned Wednesday that Lebanon cannot keep counting on more financial engineering by Banque du Liban alone to create a sustainable source of bank and government financing.Lebanon's Central Bank was compelled to intervene in two separate occasions to secure funds for Lebanese banks and the government.Citi cited market sources in Lebanon as saying that BDL offered depositors (via the banks) the opportunity to reinvest their money for a period of five to 10 years at a rate of around 7 percent each year.Citi revealed that recent financial engineering conducted by the Central Bank was more successful than last year.Citi noted that the government was receptive to the new scheme carried out by the Central Bank as it allowed banks to keep financing the Treasury.
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