Regulatory Alerts2000-03-02 | 7534Issuance of Certificates of Deposit by Banque du Liban
Banque du Liban authorizes resident and non-resident banks and financial institutions to obtain bank certificates of deposit against free deposits in Lebanese Lira, US Dollars, or Euros, with minimum nominal values set at one billion Lira and one hundred thousand each for the US Dollar and Euro. The decision mandates that these certificates be restricted to trading among financial institutions, specifies conditions for foreign currency conversions and trustee arrangements, establishes a 90% interest reduction on foreign currency certificates held by Lebanese banks, and prohibits their rediscounting at the central bank. Effective upon issuance on March 2, 2000, this decision supersedes prior regulations and applies specific market development laws to certificates marketed abroad.