Regulatory Alerts2000-12-21 | 7740Liquidation of Real Estate Properties, Shares, and Participations Acquired in Recovery of Bad or Doubtful Debts pursuant to Article 154 of the Code of Money and Credit
The Central Bank of Lebanon issued Basic Decision No. 7740 to regulate the liquidation process for real estate, shares, and partnership participations acquired by banks in recovery of bad or doubtful debts under Article 154 of the Code of Money and Credit. The decision mandates that banks establish specific liquidation reserves in Lebanese Lira, calculate them using the daily Sayrafa exchange rate, and automatically transfer sale profits to an undistributable general reserve. It further outlines strict reporting obligations, supervisory verification mechanisms, and the repeal of prior regulatory provisions to ensure timely asset disposal and compliance.
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