Regulatory Alerts2015-01-01
Bank of Zambia Circular No. 09/2015 - Restrictions on Borrowing by Libyan Embassies and Consulates
The Bank of Zambia has directed all commercial banks and financial institutions to recognize that Libyan embassies, consulates, and missions lack official authorization to borrow from host-country financial entities. Consequently, the Libyan government will not assume obligations or claims arising from such borrowing, and any mortgages or restrictions placed on Libyan state property will be deemed illegal and non-binding. Banks must therefore treat these financial arrangements as unenforceable against the Libyan state and comply with the new borrowing restrictions.
[Logo: Bank of Zambia]
Bank Of Zambia OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
BOZ/EXE/DGO/cb/cm
09 April, 2015
CB Circular No: 09/2015
To: All Heads of Commercial Banks, Financial Institutions and Financial Businesses
RESTRICTIONS ON BORROWING BY LIBYAN EMBASSIES AND CONSULATES
The Bank of Zambia wishes to inform all commercial banks and financial institutions that it has received notification from the Ministry of Foreign Affairs of the Government of National Salvation of the State of Libya, that the state of Libya has neither issued any instructions nor granted authorization to Libyan Embassies, Consulates and Missions abroad to borrow from banks and financial institutions in the countries in which they are accredited.
To this effect, the Government of National Salvation of the State of Libya will neither commit nor assume any obligations or claims arising from such actions. Further, any mortgages, restrictions or burdens arising on the property of the Libyan state in connection with the aforementioned will be considered illegal and non-binding.
For any further guidance on this matter, you may contact the Director - Bank Supervision Department.
[Signature]
Bwalya K. E. Ng’andu (Dr) DEPUTY GOVERNOR - OPERATIONS
Cc: Governor Deputy Governor - Administration Senior Director - Supervisory Policy Director - Bank Supervision Director - Non-Bank Financial Institution Supervision
Bank Square, Cairo Road P. O. Box 30080, Lusaka, Zambia Tel: 260-211-226844, 228888 Fax: 260-211-237070 E-mail:dgo@boz.zm Web: http://www.boz.zm