Regulatory Alerts2020-02-25 | 13199Central Bank of Lebanon Circular No. 545: Amendments to Decision No. 6116 and Decision No. 7835 Regarding Reserve Requirements and Facilities
The Central Bank of Lebanon issued Circular No. 545 to amend Decision No. 6116 and Decision No. 7835, establishing new maximum interest rate caps and reserve requirements for various bank facilities. The regulation distinguishes between loans granted before and after the 2017 currency devaluation, applying specific formulas based on Lebanese Treasury bond yields or LIBOR/FFR rates depending on the currency and loan type. Banks were granted a deadline of March 31, 2020, to adjust interest rates for existing loans, with the amendments taking effect immediately upon issuance.
Share