Regulatory Alerts2020-04-22 | 13222Central Bank of Lebanon Circular No. 13222 Amending Basic Decision No. 6116 Regarding Exceptional Facilities for Banks and Financial Institutions
The Central Bank of Lebanon issued Circular No. 13222 to amend Basic Decision No. 6116, mandating banks and financial institutions to grant zero-interest exceptional loans to eligible clients to cover debt installments, payroll, and operational expenses for the period of March to June 2020. The regulation establishes strict eligibility criteria, including supervisory classification and sector restrictions, while capping loan amounts based on specific financial metrics and requiring full documentation and reporting. To support this liquidity injection, the Central Bank provides corresponding US dollar funding to banks at zero percent interest, with strict penalties for non-compliance and provisions for early repayment without fees.
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