Assistance to Persons Affected by the Beirut Port Explosion

Text/ Section 1/ Circular No. 152 / Date: 30-6-2024 Basic Circular for Banks No. 152

Also addressed to Financial Institutions

We enclose a copy of Basic Decision No. 13,254 dated 6/8/2020 concerning assistance to persons affected by the Beirut Port explosion.

Beirut, on August 6, 2020
Governor of the Central Bank of Lebanon
Riad T. Salamé

Basic Decision No. 13,254
Assistance to Persons Affected by the Beirut Port Explosion

The Governor of the Central Bank of Lebanon, pursuant to the Monetary and Loan Law, particularly Articles 174, 70, and 79 thereof, and considering the exceptional circumstances currently experienced by the country, particularly as a result of the damage caused by the Beirut Port explosion and in order to assist those affected in repairing their homes and institutional premises, and based on the decision of the Central Bank Council taken in its meeting held on 6/8/2020, hereby decides as follows:

Article 1: Banks and financial institutions operating in Lebanon shall grant exceptional loans in US Dollars to persons affected by the Beirut Port explosion (individuals, individual businesses, small and medium-sized enterprises (SMEs), and corporate entities, excluding real estate developers), for the purpose of essential repair of their homes and institutional premises, subject to:

1. The concerned banks and financial institutions shall, at their own responsibility, obtain from the borrower invoices indicating the value of repair works after verifying the authenticity of these invoices.
2. These loans shall be granted regardless of the ceilings specified for each client.
3. No commission or interest shall be charged on these loans (i.e., at an interest rate of 0% (0.%)).
4. These loans shall be repaid within a period of five years through installments due at the end of each month or quarter, as specified in the contract signed between the concerned bank/financial institution and the client, starting from 31/10/2020 or at the end of the month following the month in which the exceptional loan was granted, whichever is later.

Text/ Section 1/ Circular No. 152 / Date: 30-6-2024

1. The client may agree with the bank or financial institution to:
   a. repay the exceptional loan within a period shorter than the five years specified above; b. make an early repayment (Prepayment) in US Dollars for the exceptional loan without any fees or commissions.
3. If the borrower receives any compensation, grants, or assistance for repairing his home or institutional premises (such as insurance company compensations or grants/assistance from relief agencies, ...), he shall repay them, fully or partially according to the situation, against the exceptional loan granted to him under this decision.

Article 2: The Central Bank of Lebanon shall grant loans in US Dollars at an interest rate of 0% (0%) for a period of five years, equal in value to the exceptional loans granted in US Dollars pursuant to this decision, upon submission of complete applications.

Article 3: To benefit from the provisions of this decision, the concerned banks and financial institutions shall submit, starting from 15/8/2020 and within a maximum deadline of 31/10/2020, to the Financial Operations Directorate at the Central Bank of Lebanon requests for overall approval of the loans they grant pursuant to this decision, specifying the total amounts intended to be granted, accompanied by a table listing the names of beneficiary clients and the value of loans granted to each according to the attached Form -01EXP.
Banks and financial institutions may disburse these exceptional loans to their clients before obtaining the Central Bank's approval referred to in this Article.
Banks and financial institutions may, upon client request, disburse these exceptional loans to their clients in Lebanese Lira at a rate of 3,900 Lebanese Lira per one US Dollar, only once and up to a maximum amount of 15,000 USD.

• The latest amendment to this paragraph was introduced by Intermediate Decision No. 13,615 dated 2/4/2021 (Circular No. 688).
• This clause was added pursuant to Article 1 of Intermediate Decision No. 13,261 dated 26/8/2020 (Intermediate Circular No. 569).
• The phrase "according to the market rate approved on the electronic foreign exchange operations platform" was deleted and replaced with "at a rate of 3,900 Lebanese Lira per one US Dollar" pursuant to Intermediate Decision No. 13,325 dated 10/5/2021 (Intermediate Circular No. 582).
• This paragraph was added pursuant to Article 2 of Intermediate Decision No. 13,261 dated 26/8/2020 (Intermediate Circular No. 569).

Article 4: The concerned banks and financial institutions shall retain all documents related to the loans they grant pursuant to this decision, such that the Banking Control Commission may review them at any time. These documents shall include invoices submitted by borrowers, signed loan contracts, and repayment schedules.

Article 5: The loans granted by the Central Bank to banks and financial institutions shall be repaid within the maturity period of the loans granted by these latter pursuant to this decision, through monthly installments due. The first installment shall be due at the end of the month following the month in which the Central Bank's approval was issued or on 31/10/2020, whichever is later, in the currency in which the exceptional loan granted to the client is repaid.

Article 6: Throughout the duration of these loans, the concerned banks and financial institutions are exempt from all regulatory and prudential ratios, provided that compliance with them is waived against these loans, as well as from forming provisions that may be required for them.

Article 7: This decision shall take effect upon its issuance.

Article 8: This decision shall be published in the Official Gazette.
Beirut, on August 6, 2020
Governor of the Central Bank of Lebanon
Riad T. Salamé

30 June / Circular No. 152 / Text / Section 1

6-2021
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Central Bank of Lebanon – Financial Operations Directorate Form No.: -01EXP Attached Table for Request to Benefit from Exceptional Loans Granted for Repairing Damages Resulting from the Beirut Port Explosion, based on Basic Decision No. 13,254 dated 6/8/2020 Name of Bank/Financial Institution:
Number on the Central Bank of Lebanon List:
Application No.: Date of Application: Information regarding Preliminary Approval : Number of Beneficiary Clients: Central Bank of Lebanon (1) Client Nature Code Currency of Exceptional Loan Granted: USD Total Loans Granted: A Approval No.: Code/Reference : Date of Approval (3) Repayment Currency : Number of Repayments: (2) Repayment Frequency Date of First Repayment: Date of Last Repayment:
Details
Client Information Value of Loan Granted
Client Name Risk Center Number To Client in USD Total A (1) Determination of Client Nature Code: (2) Determination of Repayment Frequency: (3) Determination of Repayment Currency:
LBP Monthly: M Individuals: EX1
2EX: Medium and Small Enterprise Q: Quarterly USD 3EX: Corporates