Regulatory Alerts2022-06-07
Circular No. 71/2015
The Central Bank of Libya mandates commercial banks to prioritize opening documentary credits for industrial companies importing raw materials and operational supplies, ensuring timely foreign currency coverage upon full document verification. This directive addresses observed delays in processing these credits that have hindered industrial firms from meeting external obligations and operating local factories at required efficiency levels. Banks are held fully responsible for any subsequent delays in processing coverage requests, reinforcing strict compliance with the banking monitoring frameworks under Law No. 1 of 2005.
Central Bank of Libya
P.O. Box 1103 - Telegram Address: CBL, Tripoli, Libya
Circular No. (71/2015)
Date: 6 Ramadan 1436 AH
Corresponding to: June 23, 2015 AD
Reference: Drmnaen / 804
To: The General Managers of Commercial Banks
The Heads of the Interim Administrative Committees of Commercial Banks
The General Manager of the Libyan Foreign Bank
Greetings,
Based on the provisions of Law No. (1) of 2005 concerning Banks and its amendments,
which constitute the Central Bank of Libya's frameworks for monitoring commercial banks and their activities,
and through the observations received by the Central Bank of Libya from certain industrial companies importing raw materials and operational supplies from abroad, regarding some banks' delay in referring coverage requests related to the documentary credits opened by these companies at various banking branches for supplying raw materials and operational supplies necessary for producing various goods required for the local market, and the resulting inability of these industrial companies to meet their external obligations and operate local factories at the required efficiency.
Therefore, you are requested to give the highest priority to opening the necessary documentary credits for these companies for supplying raw materials and operational supplies, and referring them to the Central Bank of Libya to provide the necessary foreign currency coverage after fulfilling these requests with all required documents and data, and in case of any delay, the concerned banks shall bear full responsibility regarding this matter.
Peace, mercy of Allah and blessings be upon you,
Abdul Magid Mohammed Al-Maqouri
Director of the Banks and Currency Supervision Department / Authorized
Copy to: Mr. Al-Hafith
Copy to: The Deputy Governor
Copy to: The Chairman of the Committee for Covering Banks' Accounts Abroad
Copy to: The Banking Follow-up and Compliance Monitoring Department
K.A. Al-Farjani / Periodic Circulars / 25
www.cbl.gov.ly, SWIFT Code: CBLJLYLX, Fax: +218 21 444 1488, Tel: +218 21 333 3591