Regulatory Alerts2023-07-12
Circular 2011/10: Mitigation of Credit Risks Associated with Loans to Former Regime Figures
The Central Bank of Libya issued Circular 2011/10 to mandate commercial banks to mitigate credit risks arising from loans and facilities granted to former regime figures during the February 17 revolution. Banks are required to actively pursue debt collection, classify debts according to regulatory guidelines, and establish necessary provisions for potential defaults. Additionally, institutions must secure all collateral, take legal action to seize free assets of the former regime, and report all related data and actions to the Banking and Currency Supervision Department.
Share