Exceptional Exemptions from Mandatory Bank Investments

Circular No. 580 for Banks

We submit to you Circular No. 13317 dated 25/02/2021 regarding the amendment of Central Decision No. 13217 dated 09/04/2020 concerning exceptional exemptions from mandatory bank investments, attached to Central Circular No. 150.

Beirut, 25 February 2021 Governor of the Central Bank of Lebanon Riad T. Salam

Circular Decision No. 13317 Amendment of Central Decision No. 13217 dated 09/04/2020 (Exceptional exemptions from mandatory bank investments)

The Governor of the Central Bank of Lebanon, Pursuant to the Monetary and Banking Law, particularly Articles 70 and 174 thereof, Based on Central Decision No. 13217 dated 09/04/2020 and its amendments concerning exceptional exemptions from mandatory bank investments, Based on the Decision of the Central Bank Council taken in its meeting held on 24/02/2021, Hereby decides as follows:

Article 1: Added to Central Decision No. 13217 dated 09/04/2020 is "Article Three (Repeated)" as follows:

"Article Three (Repeated): Each bank shall deposit an amount equivalent to 100% of the value of 'funds' referred to in Article One thereof, in cash with it or with its correspondents abroad, in a free account subject to no obligations.

Note that funds deposited in 'Special Accounts' opened under the provisions of Article Two of Central Decision No. 13262 dated 27/08/2020 are subject to this provision but remain subject only to the provisions of the aforementioned Central Decision dated 27/08/2020 under which it was established."

Article 2: This decision takes effect upon its issuance. Article 3: This decision shall be published in the Official Gazette.

Beirut, 25 February 2021 Governor of the Central Bank of Lebanon Riad T. Salam