Regulatory Alerts2020-08-26 | 13261Aid to those affected by the explosion at the Port of Beirut
The Central Bank of Lebanon issued Intermediary Decision No. 13261 to amend Basic Decision No. 13254 regarding exceptional loans for individuals and businesses affected by the August 2020 Port of Beirut explosion. The amendment clarifies that borrowers must repay received insurance compensations, grants, or relief assistance in full or partially against their exceptional loans, and permits banks to disburse these funds once at a maximum of 150,000 Lebanese Lira based on the electronic platform's market rate. This decision takes effect immediately upon issuance and is published in the Official Gazette to resolve prior application ambiguities.
Intermediary Circular No. 569
To Banks and Financial Institutions
We enclose for your reference a copy of Intermediary Decision No. 13261 dated 26/8/2020 regarding the amendment of Basic Decision No. 13254 dated 6/8/2020 (Aid to those affected by the explosion at the Port of Beirut) attached to Basic Circular No. 152.
Beirut, 26 August 2020
Governor of the Central Bank of Lebanon
Riad T. Safre
Intermediary Decision No. 13261 Amendment of Basic Decision No. 13254 dated 6/8/2020
The Governor of the Central Bank of Lebanon, pursuant to the Monetary and Loan Law, particularly Articles 174 and 70 thereof, and pursuant to Basic Decision No. 13254 dated 6/8/2020 regarding aid to those affected by the explosion at the Port of Beirut, and clarifying Item (4) of Article One of Basic Decision No. 13254 to resolve ambiguity in the application of its provisions, and based on a decision by the Central Bank Council taken at its meeting held on 25/8/2020, decrees the following:
Article One: Item (5) is added to Article One of Basic Decision No. 13254 dated 6/8/2020 with the following text: "5. In case the borrower receives any compensation, grants, or assistance to repair his home or business premises (such as insurance company compensations or grants/assistance from relief agencies, ...), he shall repay them in full or partially according to the circumstances, against the exceptional loan granted to him under this Decision."
Article Two: The following paragraph is added to Article Three of Basic Decision No. 13254 dated 6/8/2020: "Banks and financial institutions may, upon request by the client, disburse these loans according to the market rate adopted on the electronic platform for exceptional transactions of their clients in Lebanese Lira, and this shall be done only once with a maximum amount not exceeding 150,000 LBP."
Article Three: This Decision shall take effect upon its issuance.
Article Four: This Decision shall be published in the Official Gazette.
Beirut, 26 August 2020
Governor of the Central Bank of Lebanon
Riad T. Safre