Lebanese central bank slashes interest rates amid crisis

Lebanon’s central bank lowers interest rates on dollar, Lebanese pound deposits and loans

Lebanon’s central bank says it’s dramatically lowering interest rates on dollar and Lebanese pound deposits and loans as part of measures to deal with a burgeoning economic crisis.

Wednesday’s decision comes as Lebanon, the world’s third most indebted country, faces an unprecedented economic and political crisis amid nearly 50 days of nationwide protests.

A notice from the Banque de Liban says it slashed interest rates on dollar deposits to 5%, down from as high as 14%.

Banks had closed for nearly two weeks at the start of protests in mid-October. There was a run on the banks after they reopened and the local currency lost nearly 40% of its value. The government then resigned on Oct. 29 and a new one has yet to be named.