Investments by Residents in Securities Issued by Non-Residents

Central Bank Circular No. 665

To Banks, Financial Institutions, Financial Intermediation Institutions, and Leasing Companies

Referring to Central Bank Decision No. 13544 dated 28/3/2023 amending Basic Decision No. 8052 dated 13/2/2002 regarding information on investments by residents in securities issued by non-residents, attached to Basic Circular No. 91.

Beirut, 28 March 2023 Governor of the Central Bank of Lebanon Riad T. Salamé

Central Bank Decision No. 13544 Amending Basic Decision No. 8052 dated 13/2/2002 regarding information on investments by residents in securities issued by non-residents

The Governor of the Central Bank of Lebanon, Pursuant to the Monetary and Banking Law, particularly Articles 146 and 179 thereof; And pursuant to Leasing Operations Law No. 160 dated 27/12/1999, particularly Article 20 thereof; And pursuant to Basic Decision No. 8052 dated 13/2/2002 and its amendments regarding information on investments by residents in securities issued by non-residents; And pursuant to the decision of the Central Bank Council taken in its meeting held on 22/3/2023,

Decrees as follows:

Article 1: The text of paragraph (2-4) of Chapter II of the Interpretive Guide attached to Basic Decision No. 8052 dated 13/2/2002 is repealed and replaced with the following text: « 2-4 Valuation Rule When declaring ownership of any security, the nominal value shall not be used, but rather its market value at the close of operations on the last day of each quarter. It should be noted that the market value will also be used for reconciliation with balances as of the same date. Regarding securities linked to debts, such as mortgage-backed bonds, the prevailing market value on that date shall be declared, taking into account paid amounts. The market value of a security is the quoted trading price in an organized market. If the market price is unavailable, securities shall be valued based on the latest pricing or based on the book value recorded in the balance sheet. All amounts shall be expressed in their US Dollar equivalent (in units), based on prevailing exchange rates on the last day of each quarter. »

Article 2: The texts of the Respondent Identification Form and Questionnaires "Meem" and "Jeem" attached to Basic Decision No. 8052 dated 13/2/2002 are repealed and replaced with the new versions attached to this decision.

Article 3: This decision shall take effect as of the first quarter of 2023.

Article 4: This decision shall be published in the Official Gazette.

Beirut, 28 March 2023 Governor of the Central Bank of Lebanon Riad T. Salamé

Central Bank of Lebanon Statistics and Economic Research Department Block E, 4th Floor

Survey on Investments in Securities Issued by Non-Resident Entities As of ...............................

Respondent Identification Form Identification Number (Registration number at the Central Bank): (or Registration number at the Ministry of Economy for insurance companies):

Company Name: .......................................................................................... Address: ............................................................................................... Postal Code: Place: ..............................................

Sector Classification (place a check mark in the appropriate box):

1. Commercial Banks
2. Medium and Long-Term Financing Banks
3. Financial Institutions
4. Intermediation Institutions
5. Leasing Institutions
6. Other

Declaration as: ☐ Owner (Self-custody) ☐ Depository Institution

When inquiry is needed, the Central Bank of Lebanon may contact the following institution: ........................ Phone Number: ........................................... . Internal Extension: ........................ Email Address: ........................................................................... .

Note: All sections of this questionnaire must be completed according to the instructions in the Interpretive Guide. For inquiries regarding this circular, please contact: 01-750000

• Iman Abu Hassan (Extension 5522) lb.gov.bdl@iabouhassan
• Nour Attieh Abu Fayyad (Extension 5523) lb.gov.bdl@nattieh
• Rajeeb Ajaj (Extension 5535) rajeeb@bdl.gov.lb

Please return the questionnaire with complete information to the following address within one month from the end of each quarter: Central Bank of Lebanon – Beirut Statistics and Economic Research Department – External Sector and Balance of Payments Division

Name of Authorized Signatory: ........................................................................................ Position: ............................................................................................... Place and Date: ...................................................................................... Signature: ................................................................................................

Questionnaire Meem 1 Identification Number: Meem 1 Investment in equity securities issued by non-resident and unaffiliated entities* Self-Custody Market value of equity securities as of [date] by type of depository institution (US Dollar equivalent) ISO α2 Code | Issuing Entity Country Deposited at non-resident depositories | Deposited at resident depositories | Self-Custody Number of Securities | Value of Securities | Number of Securities | Value of Securities | Number of Securities | Value of Securities Total Value

*Unaffiliated non-resident entity: A non-resident company with no direct investment relationship with this respondent (see Interpretive Guide).

Questionnaire Meem 2 Identification Number: Meem 2 Investment in short-term debt securities issued by non-resident and unaffiliated entities* Self-Custody Market value of short-term debt securities as of [date] by type of depository institution (US Dollar equivalent) ISO α2 Code | Issuing Entity Country Deposited at non-resident depositories | Deposited at resident depositories | Self-Custody Number of Securities | Value of Securities | Number of Securities | Value of Securities | Number of Securities | Value of Securities Total Value

*Short-term debt securities are those with a maximum original maturity of one year.

Questionnaire Meem 3 Identification Number: Meem 3 Investment in long-term debt securities issued by non-resident and unaffiliated entities* Self-Custody Market value of long-term debt securities as of [date] by type of depository institution (US Dollar equivalent) ISO α2 Code | Issuing Entity Country Deposited at non-resident depositories | Deposited at resident depositories | Self-Custody Number of Securities | Value of Securities | Number of Securities | Value of Securities | Number of Securities | Value of Securities Total Value

*Long-term debt securities are those with an original maturity exceeding one year.

Questionnaire Jeem 1 Identification Number: Jeem 1 Holding of equity securities issued by non-resident entities Equity securities received for deposit Market value of equity securities as of [date]: (US Dollar equivalent) Client Type -------------------------- Issuing Entity Country | Non-Resident Number of Securities | Value of Securities A - Held for resident entities (excluding depositories) Country | ISO α2 Code B - Held for other resident depository institutions C - Held for personal account Total Value Breakdown of total value by securities deposit location: Self-Custody | Deposited at resident depositories | Deposited at non-resident depositories Number of Securities | Value of Securities

Questionnaire Jeem 2 Identification Number: Jeem 2 Holding of debt securities issued by non-resident entities Short-term debt securities received for deposit Market value of short-term debt securities as of [date]: (US Dollar equivalent) Client Type -------------------------- Issuing Entity Country | Non-Resident Number of Securities | Value of Securities A - Held for resident entities (excluding depositories) Country | ISO α2 Code B - Held for other resident depository institutions C - Held for personal account Total Value Breakdown of total value by securities deposit location: Self-Custody | Deposited at resident depositories | Deposited at non-resident depositories Number of Securities | Value of Securities

Questionnaire Jeem 3 Identification Number: Jeem 3 Holding of debt securities issued by non-resident entities Long-term debt securities received for deposit Market value of long-term debt securities as of [date]: (US Dollar equivalent) Client Type -------------------------- Issuing Entity Country | Non-Resident Number of Securities | Value of Securities A - Held for resident entities (excluding depositories) Country | ISO α2 Code B - Held for other resident depository institutions C - Held for personal account Total Value Breakdown of total value by securities deposit location: Self-Custody | Deposited at resident depositories | Deposited at non-resident depositories Number of Securities | Value of Securities