Figures released by Banque du Liban indicate that the value of letters of credit (LCs) opened to finance imports to Lebanon totaled $1.4bn in the first quarter of 2018, down by 23% from $1.8bn in the first quarter of 2017. Further, utilized credits for imports reached $1.3bn in the covered quarter, down by 36.1% from $2.1bn in the same quarter last year. They accounted for 94% of opened LCs in the first quarter of 2018. Also, outstanding import credits stood at $1.03bn at the end of March 2018 compared to $1.2bn at end-March 2017. In addition, the aggregate value of inward bills for collection reached $250.3m in the first quarter of 2018, constituting a drop of 53.6% from $539.8m in the first quarter of 2017. The outstanding value of inward bills for collection reached $59m at the end of March 2018 relative to $74.8m at end-March 2017.

In parallel, the value of documentary LCs opened to finance exports from Lebanon totaled $765m in the first quarter of 2018, constituting a decrease of 30.8% from $1.1bn in the first quarter of 2017. Further, utilized credits for exports reached $721.3m in the covered quarter, down by 17.3% from $872m of used credits in the same quarter last year. Also, outstanding export credits stood at $872m at the end of March 2018 compared to $933m at end-March 2017. The aggregate value of outward bills for collection amounted to $387.1m in the first quarter of 2018, constituting an increase of 7.1% from $361.5m in the same quarter of 2017. The outstanding value of outward bills for collection reached $415.3m at the end of March 2018 relative to $478.4m at end-March 2017.