Central Bank of Libya

P.O. Box 1103 | Telegram Address: Misrata, Tripoli, Libya

Reference No.: 804 / ( )

Circular Letter No. (2017/206)

Date: 24 Rabi' al-Awwal 1439 AH
Corresponding Date: December 12, 2017 AD

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To: Exporters Working with Banks

Greetings,

This Administration has received a letter from the Chairman of the Management Committee of the General Authority for Social Security Fund, bearing Reference No. (253/2) dated November 15, 2017, which refers to the provisions of Law No. (20) of 1999, amended by Law No. (10) of 2000, concerning the Social Security Fund and specifying resources to cover expenditures of social institutions and the center for persons with disabilities, including the solidarity contribution (1%) deducted from the salaries of employees in public and private sectors, as well as self-employed individuals across Libya. Accordingly, it requested a circular to all commercial banks operating in Libya mandating that all public and private entities, when opening letters of credit (LCs), must submit a certificate issued by the General Authority for Social Security Fund and its branches across Libya, confirming that such entity is committed to paying the subscription fees stipulated in the aforementioned laws and decisions, similar to the Social Security Fund.

Furthermore, with reference to this Administration's circular No. (2017/2) dated February 1, 2017, concerning the regulations governing the use of foreign currency for opening letters of credit, Item 3 (LC Opening Procedures), paragraph (5) requires the entity to submit an original and recent certificate addressed to the bank confirming the settlement of all tax liabilities, and paragraph (6) requires an original and recent certificate addressed to the bank confirming the settlement of all legally mandated guarantee liabilities.

Therefore, you are requested to mandate all public and private entities, when opening letters of credit, to submit a certificate issued by the General Authority for Social Security Fund and its branches across Libya, confirming that the entity is committed to paying the subscription fees stipulated in the aforementioned law.

Peace, mercy of God, and blessings be upon you,

Mustafah Ammar Al-Muzgubi
Deputy Director of the Banking and Currency Supervision Department for Field Supervision, Policies, and Legislation

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Copies to:
Mr. / The Governor
Mr. / Director of the Legal Department - Central Bank of Libya Mr. / Director of the Banking and Currency Supervision Department Mr. / Chairman of the Management Committee of the General Authority for Social Security Fund Mr. / Deputy Director of the Banking and Currency Supervision Department for Library Affairs and Compliance Monitoring Mr. / Director of Bank Follow-up and Compliance Supervision

Branch 1 / Al-Transamani / Circular Letters 5/2017