Regulatory Alerts2020-07-08 | 13245Facilities that may be granted by BDL to banks and financial institutions
The Central Bank of Lebanon, through Governor Riad Tawfiq Safieh, issued Central Decision No. 13245 amending Basic Decision No. 6116 to expand foreign currency financing facilities for banks and financial institutions importing essential food materials, raw materials, and farmer products. The amended Article 14 bis mandates that imported goods be exclusively for domestic consumption, requires banks to verify documentation and secure explicit client undertakings against re-export, and stipulates settlement in Lebanese Lira to secure the necessary foreign currency. Furthermore, it establishes exchange rates via an electronic platform, preserves pre-July 2020 approved applications at prior rates, and imposes strict compliance measures including a double-interest reserve and a 50% penalty charge for non-compliant banks.