Regulatory Alerts2023-07-12
Central Bank of Libya Circular 12/2012: Cancellation of the 25% Cash Guarantee on External Remittances for Imports
The Central Bank of Libya has canceled the mandatory 25% cash guarantee on external remittances used for importing goods and means of production. Issued by the Director of the Banking and Currency Supervision Department under Circular 12/2012, this directive amends prior rules to permit commercial banks to process these remittances without holding the deposit. The amendment takes immediate effect, streamlining import financing by eliminating the refundable Libyan Dinar deposit previously required upon settlement.
Central Bank of Libya
CENTRAL BANK OF LIBYA
CENTRAL BANK OF LIBYA
CENTRAL BANK OF LIBYA
Postal Address: Libya, Tripoli, P.O. Box 1103.
Email: R.M.N/804
Reference No.: (2012/12)
Date: 23 Jumaada al-Awwal, 1433 AH.
Corresponding Date: 15 April 2012 AD.
To the General Managers of Commercial Banks,
To the Heads of Temporary Administrative Committees in Commercial Banks,
To the General Manager, Libyan External Bank.
Greetings...
Subject: Cancellation of the 25% Cash Guarantee on Processed External Remittances for Importing Goods and Means of Production, pursuant to Circular No. (2012/4).
Based on the provisions of Law No. (1) of 2005 AD regarding Banks,
And with reference to Circular No. (2012/4) issued on 30/1/2012 AD, regarding
Authorizing Commercial Banks to accept applications for importing goods and means of production, using bank transfers, and referring them to the relevant committees at the Central Bank of Libya for approval, according to conditions stipulating that the customer deposits a 25% cash guarantee in Libyan Dinars, of the value of the requested remittance, which is refunded upon completing the necessary settlement with the bank, according to established procedures.
And in reference to our Circular No. (2012/9) issued on 28/3/2012 AD, which granted
Authorization to Commercial Banks to resume approving applications for importing goods and means of production submitted to them, via external remittances issued, without the need for display before the Central Bank of Libya.
And based on the instructions of Mr./Deputy Governor of the Central Bank of Libya, we inform you that it has been decided to cancel
The operation of the 25% cash guarantee requirement for external remittances used for importing goods and means of production, which was previously in effect according to the instructions of the Central Bank of Libya issued in Circular No. (2012/4) mentioned above.
Peace, mercy of God and blessings be upon you...
Dr. Mohamed Abdeljalil Abousnina
Director of the Banking and Currency Supervision Department
To: The Governor,
Mr./Deputy Governor,
To the Directors of the Central Bank of Libya (Benghazi - Sabha - Sirte),
Loans and Integration Division.
25/1/2012 AD
www.cbl.gov.ly, SWIFT code: CBLJLYLX, Fax: +218 21 333591, Phone: +218 21 444 1488