Regulatory Alerts2018-08-16 | 12860Central Bank of Lebanon Circular No. 505: Amendment of Basic Decision No. 8779 on Microcredits
The Central Bank of Lebanon issued Circular No. 505 to amend Basic Decision No. 8779 regarding the definition and regulation of microcredits. The amendment raises the maximum loan limit to 30 million Lebanese Lira, allows banks to lend using funds deposited by microfinance institutions, and caps total guarantees from any single microfinance institution at 15 billion Lira. Additionally, the decision mandates enhanced reporting requirements and sets a July 31, 2019 deadline for microfinance institutions to regularize their direct lending operations or liquidate.
Circular No. 505
For Banks and Financial Institutions
We enclose Circular No. 12860 dated 16/8/2018 concerning the amendment of Basic Decision No. 8779 dated 13/7/2004 (Microcredits) attached to Basic Circular No. 93.
Beirut, August 16, 2018
Governor of the Central Bank of Lebanon
Riad T. Salamé