Regulatory Alerts2017-12-21 | 12738Central Bank of Lebanon Decision No. 12738 Amending Decision No. 12116 on Debt Restructuring
The Central Bank of Lebanon issued Decision No. 12738 to amend Decision No. 12116 regarding debt restructuring, specifically replacing Article 5 to allow debt settlement or reduction via real estate, shares, and partnership interests subject to Banking Control Committee approval. The amendment establishes a mechanism for the Central Council to approve the creation of liquidation reserves for non-liquidated assets over a twenty-year period at a rate of one-twentieth annually. Additionally, the decision repeals Articles 10 and 11, requiring banks and financial institutions benefiting from Article 5 to obtain Central Council approval for any modifications to their borrowers' loan restructuring plans.
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