Central Bank of Libya Circular 3/2015 on Foreign Currency Regulations for Letters of Credit and Imports

Central Bank of Libya
P.O. Box 1103, Al-Atwan, Misrata Street - Tripoli - Libya Electronic: No. 804

Note: Circular No. (2015/3)
Date: 11 Rajab 1436 AH / April 30, 2015 AD

To: General Managers of Commercial Banks
To: Heads of Temporary Administrative Committees at Commercial Banks To: General Manager, Libyan Foreign Bank

With greetings...

Subject: Issuance of regulations governing the use of foreign currency for opening Letters of Credit and documents for collection

Based on the provisions of Law No. (1) of 2005 concerning Banks, and its amendments, and on the supervisory and regulatory role of the Central Bank of Libya under the provisions of the law.

We inform you of the issuance of Decision No. (96) of 2015 by the Governor of the Central Bank of Libya dated 30/4/2015, establishing regulations governing the use of foreign currency for opening Letters of Credit and documents for collection, and conditions for opening Letters of Credit for imports from abroad.

And as we enclose a copy of the aforementioned Decision No. (96) of 2015 by the Governor, you are requested to take the necessary measures for its implementation.

Peace, mercy of God and blessings be upon you...
Abduljaleed Mohammed Al-Maouri
Director of the Banking Supervision Department, and Acting Official

Mr. Al-Baghat
Mr. Nader Al-Baghat
Mr. Head of the Committee for Covering Foreign Resources, Central Bank of Libya To: Managers of Branches at the Central Bank of Libya (Benghazi, Sabha, Murzuq) Mr. Director of Legal Affairs Department, Central Bank of Libya Mr. Director of Banks Department, Central Bank of Libya Mr. Director of Deposits and Debts Department, Central Bank of Libya Mr. General Manager, Libyan Debt Partnership Company. To: Directors of Departments and Units at the Center (Al-Buraidah, Al-Madkhil, Fund Separation) Banking and Statistics Department Customs Audit and High Import Department. Note: 2015/4/30

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Decision of the Governor of the Central Bank of Libya No. (96) of 2015 Establishing regulations governing the use of foreign currency for opening Letters of Credit and documents for collection, and conditions for opening Letters of Credit for imports from abroad

Governor of the Central Bank of Libya
Having reviewed the Constitutional Declaration issued by the National Transitional Council on 03 Ramadan 1432 AH, corresponding to 03/08/2011 AD, and its amendments. And Law No. (1) of 2005 concerning Banks, and its amendments. And the administrative organization of the Central Bank of Libya. And Decision No. (17) of 2014 by the Board of Directors of the Central Bank of Libya concerning certain procedures and regulations related to executing collection operations. And Decision No. (1) of 2013 by the Governor of the Central Bank of Libya concerning regulating foreign currency transactions. And defining the powers to execute external tenders for various purposes. And Decision No. (32) of 2015 by the Governor of the Central Bank of Libya, canceling an article in Decision No. (1) of 2013 and adding a provision. And the resolutions submitted by the Bank's Economic Advisory Committee and the body tasked with studying bank coverage requests regarding foreign currency. And in light of actual requirements.

Decision

Article One
Temporary suspension of accepting documents for collection for industrial imports by the public and private sectors, in relation to operating commercial banks, and all industrial and service import operations from abroad shall be financed through Letters of Credit opened for this purpose, in accordance with currently applied regulations.

Article Two
Actual suspension of establishing Transferable Letters of Credit by non-commercial banks, and all banks are required to include this condition within the terms for opening Letters of Credit for imports from abroad.

Article Three
The Central Bank of Libya guarantees the coverage of commercial banks' foreign currency obligations at associated foreign banks, in exchange for their submitted Letters of Credit and permitted external remittances, within thirty days from the date of submitting the coverage request to the Central Bank of Libya, provided that requests meet all conditions and financing requirements.

www.cbl.gov.ly, swift code: CBLULYLX, +218 21 444 1488 - Fax: +218 21 333 3591 FAX NO: 21824671

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Article Four
All commercial banks operating in opening Letters of Credit for industrial imports from abroad are obligated to add the condition of providing a certificate issued by an international inspection company on supplied goods, within the terms for opening Letters of Credit.

Article Five
All commercial banks operating by processing suppliers via Letters of Credit are obligated to submit state customs declarations for transporting supplied goods to the port and destinations, provided that these customs declarations are submitted to banks within one month from the date of receiving documents, and all banks must notify the Banking Supervision Department and Acting Authority of any cases of non-compliance in submitting required customs declarations promptly, to take appropriate measures.

Article Six
The currently applied regulations on the use of foreign currency remain in effect, insofar as they do not conflict with this Decision.

Article Seven
This Decision is implemented from the date of its issuance, and the Banking Supervision Department and Operations Department at the Central Bank of Libya are tasked with taking necessary measures to put this Decision into effect.

Mr. Omar Al-Kabir
Governor

Numbered: 2015/4/30