Regulatory Alerts2019-07-18 | 13087Central Bank of Lebanon Circular No. 521: Amendment of Decision No. 7776 on Credit, Investment, and Participation Operations
The Central Bank of Lebanon issued Circular No. 521 to amend Decision No. 7776 by prohibiting banks from granting or renewing credit to institutions with annual business volumes exceeding 1.5 billion Lebanese Lira unless audited financial statements are provided and match tax authority records. Financial institutions currently in violation of this new provision are granted a maximum deadline of September 30, 2020, to regularize their existing credit files. Failure to comply by this date requires banks to demand immediate repayment of the loans or deposit an equivalent amount into a non-interest-bearing frozen account at the Central Bank.
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