Regulatory Alerts2022-10-12 | 13487Reserve Requirements and Facilities that may be granted by BDL to banks and financial institutions
The Central Bank of Lebanon issued Mediator Decision No. 13487 to amend Basic Decisions Nos. 6116 and 7835, permitting banks and financial institutions to prepay certain residential, higher education, and environmental loans without prior Central Bank approval. The decision suspends mandatory reserve allocations and disbursement obligations against prepaid loans, provided clients bear applicable prepayment penalties for residential mortgages within seven years of implementation. Furthermore, the Banking Supervision Commission will verify loan usage compliance, and these provisions apply retroactively to pending prepayment requests submitted prior to the decision's issuance date.
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