Central Bank of Libya P.O. Box 1103, Tripoli – The Great Socialist People's Libyan Arab Jamahiriya Telegram Address: MisrLibya - Tripoli

Reference: T.R.M./790 Circular No. (2 / 2011) Date: 14 Rabi' al-Awwal... Corresponding: 16 Nisan 1379 A.H. (2011 AD)

To: Managing Directors of Commercial Banks To: Managing Director of the Libyan Foreign Bank

Greetings,

Based on the provisions of Law No. (1) of 1373 A.H. (2005 AD) concerning Banks, and with reference to Circular No. (11) of 1372 A.H. (2004 AD), concerning the generalization of the Popular Committee Decision No. (28) of 1372 A.H. (2004 AD), regarding the granting of credit facilities to foreign companies, and to the subsequent Circular No. T.R.M.N (2006/11) dated 4/7/1374 A.H. (2006 AD), which generalized the Board of Directors Decision No. (23) of 1374 A.H. (2006 AD), regarding the amendment of Article Three of the aforementioned Popular Committee Decision No. (28) of 1372 A.H. (2004 AD).

And with reference to this Department's Circulars No. T.R.M.N (2008/11) and (2008/12), dated 14/7/1376 A.H. (2008 AD), concerning the generalization of Board of Directors Decision No. (45) of 1376 A.H. (2008 AD), regarding the determination of financial structures for banks and their credit portfolios, and Decision No. (46) of 1376 A.H. (2008 AD), regarding credit concentration limits, and the controls and standards governing them.

And with reference to Circular No. (2008/14) issued on 15/7/2008 AD, which generalized Board of Directors Decision No. (48) of 1376 A.H. (2008 AD), regarding the conditions for granting credit facilities to foreign companies.

And with reference to Circulars No. T.R.M.N (2010/3) and (2010/4), dated 25/1/2010 AD, concerning the generalization of Governor's Decisions No. (2) of 1378 A.H. (2010 AD), regarding credit concentration limits and the controls and standards governing them, and Decision No. (3) of 1378 A.H. (2010 AD), regarding the determination of financial structures for banks and their credit portfolios.

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And in continuation of this Department's Circular No. (2010/12) issued on 17/8/2010 AD, which generalized Board of Directors Decision No. (24) of 1378 A.H. (2010 AD), regarding the amendment of Decision No. (48) of 1376 A.H. (2008 AD), regarding the conditions for granting credit facilities to foreign companies.

We hereby inform you that the Governor has issued Decision No. (20) of 1379 A.H. (2011 AD), amending a ruling in Decision No. (3) of 1378 A.H. (2010 AD), regarding the determination of financial structures for banks and their credit portfolios.

And as we attach a copy of the aforementioned Governor's Decision No. (20), you are requested to implement it and take necessary measures within the period specified in Article Two thereof. The Banking and Currency Supervision Department will ensure that banks comply with the decision by settling their status accordingly.

Peace, mercy of Allah, and blessings be upon you.

Dr. Mohamed Abdul Jalil Abu Seneena Director of Banking and Currency Supervision

Copies to: The Governor; The Deputy Governor; The Director of the Office of the General Committee for Financial Audit Affairs; The Director of Auditing Department – Central Bank of Libya; Managing Directors of Central Bank Branches (Benghazi, Sabha, Sirte); Managing Directors of Specialized Banks (Development, Agricultural, Savings and Real Estate Investment); The Secretary General of the Board of Directors – Central Bank of Libya. Copies to: Follow-up and Compliance Monitoring Department; Analysis and Supervisory Review Department.

Amal.. Amal / Circulars 2011

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Central Bank of Libya P.O. Box 1103, Tripoli / The Great Socialist People's Libyan Arab Jamahiriya Telegram Address: MisrLibya - Tripoli

Governor's Decision No. (20) of 1379 A.H. (2011 AD) Amending a Ruling in Decision No. (3) of 1378 A.H. (2010 AD) on Determining Financial Structures for Banks and Their Credit Portfolios

The Governor

Governor of the Central Bank of Libya Having reviewed Law No. (1) of 1373 A.H. (2005 AD), concerning Banks; And having reviewed Governor's Decision No. (3) of 1378 A.H. (2010 AD), concerning the determination of financial structures for banks and their credit portfolios;

Has Decided

Article One Article Three of Governor's Decision No. (3) of 1378 A.H. (2010 AD), concerning the determination of financial structures for banks and their credit portfolios, is amended to read as follows:

1. Banks shall not grant credit facilities in the form of overdraft accounts to finance long-term operations or projects, or to purchase fixed assets, which must be financed through commercial loans repaid according to specific maturities, provided that facilities granted in the form of overdraft accounts are used exclusively for short-term operations.
2. The total real estate facilities granted by a bank in the form of overdraft accounts must not exceed 30% of the bank's direct net credit portfolio.
3. Commercial loans granted by a bank must not exceed 30% of the bank's direct net credit portfolio, with each bank required to alert to the risks of these loans and their reflection on the quality of its credit portfolio, taking these risks into account within the bank's credit policies, whether in terms of the mechanism and conditions for granting these facilities or in how they are monitored.
4. Banks may grant direct facilities in all other categories not mentioned above, within limits deemed appropriate and consistent with the risk limits and ceilings set in their credit policies, ensuring that these policies consider the necessity of diversifying credit risks and avoiding concentration in a specific type or activity, sector, or geographic region, provided that the direct net credit portfolio does not exceed the limits stipulated in Article Two of Governor's Decision No. (3) of 1378 A.H. (2010 AD), referenced above.

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Central Bank of Libya P.O. Box 1103, Tripoli / The Great Socialist People's Libyan Arab Jamahiriya Telegram Address: MisrLibya - Tripoli -2-

The Governor

Article Two This Decision shall be effective from the date of its issuance, and banks exceeding these ratios are granted a one-year grace period from the issuance date to settle their status according to the percentages specified in paragraphs (2) and (3) of Article One of this Decision. The Banking and Currency Supervision Department shall take the necessary measures to implement it.

Mohamed Omar Bin Qadara Governor

Issued on: 13 / 02 / 1379 A.H. (2011 AD).