Regulatory Alerts2025-01-13 | 13686Operations relating to credit, investment and shareholding and participation
The Acting Governor of the Central Bank of Lebanon issued Decision No. 13686 to amend Basic Decision No. 7776 by adding a new paragraph prohibiting Lebanese banks and financial institutions from granting US dollar-denominated loans or facilities to clients unless funded by "Cash Funds" as defined in Decision No. 13548. This amendment takes effect immediately upon issuance and mandates publication in the Official Gazette. The regulatory change directly restricts dollar liquidity usage to ensure alignment with electronic settlement frameworks and existing monetary policy definitions.
Central Bank Circular No. 723 For Banks and Financial Institutions
We hereby enclose for your reference a copy of Central Bank Decision No. 13686 dated January 13, 2025, concerning the amendment of Basic Decision No. 7776 dated February 21, 2001 (Credit, Investment, Shareholding and Participation Operations) attached to Basic Circular No. 81.
Beirut, January 13, 2025 Acting Governor of the Central Bank of Lebanon
Dr. Wissam Mansouri
Central Bank Decision No. 13686 Amendment of Basic Decision No. 7776 dated February 21, 2001 (Credit, Investment, Shareholding and Participation Operations)
The Governor of the Central Bank of Lebanon, Pursuant to the Monetary and Banking Law, particularly Articles 70, 76, 79, and 174 thereof, And pursuant to Basic Decision No. 7776 dated February 21, 2001 and its amendments relating to credit, investment, shareholding and participation operations, And pursuant to the decision of the Central Bank Council adopted in its meeting held on January 8, 2025
Has decided as follows:
Article One: Paragraph (11) is added to Article One of Basic Decision No. 7776 dated February 21, 2001, with the following text: « -11 Banks and financial institutions operating in Lebanon are prohibited from granting their clients new loans or facilities of any kind in US Dollars other than "Cash Funds" according to the definition set forth in Basic Decision No. 13548 dated April 19, 2023 (Electronic Settlement Operations relating to "Cash Funds") attached to Basic Circular No. 165 »
Article Two: This Decision shall take effect upon its issuance. Article Three: This Decision shall be published in the Official Gazette.
Beirut, January 13, 2025 Acting Governor of the Central Bank of Lebanon
Dr. Wissam Mansouri