Regulatory Alerts2020-06-08 | 13234Documentary Credits and Facilities that may be granted by BDL to banks and financial institutions
The Central Bank of Lebanon issued Circular/Decision No. 13234 to amend Basic Decisions 6116 and 7144, enabling banks to secure foreign currency for importing essential goods such as oil derivatives, wheat, medicines, and infant milk. The regulation mandates that banks submit comprehensive documentation to the Foreign Operations and Exchange Department, ensuring imported goods are exclusively for local consumption while allowing a 300-day retroactive window for invoice submission. Non-compliant banks face penalties including doubled reserve deposits and a 50% penalty charge, with the Central Bank retaining authority to suspend benefits for violations.
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