Central Bank of Libya

CENTRAL BANK OF LIBYA

Circular No. 2016/4 (CBL)
Date: 28 Jumaada al-Akhir 1437 AH
Corresponding to: April 7, 2016

Reference No.: 804/CBL

To: General Managers of Commercial Banks
Heads of Temporary Administrative Committees in Commercial Banks Director General - Libyan Foreign Bank

Greetings...

Subject: Regulations Governing the Use of Foreign Currency for Opening Letters of Credit

Based on the provisions of Law No. (1) of 2005 regarding Banks, as amended by Law No. (46) of 2012.

And referring to Circular No. (3) of 2015, issued on April 30, 2015, which conveyed the decision of the Governor of the Central Bank of Libya No. (96) of 2015, regarding the establishment of regulations for using foreign currency to open Letters of Credit and Collection Documents, and conditions for opening Letters of Credit for imports from abroad. And referring to Circular No. (2) of 2016, issued on January 7, 2016, regarding the regulations, conditions, and procedures governing the opening of Letters of Credit.

And while emphasizing the necessity to adhere to the regulations issued under the aforementioned instructions, and expediting necessary actions to accept applications for opening Letters of Credit submitted by various entities in accordance with prevailing regulations, we inform you of the Central Bank of Libya's instructions which stipulate adding certain regulations to govern dealings with Letters of Credit for importing goods and services from abroad, as follows:

1. Opening Letters of Credit covered by bank clients, according to the agency format, is permitted, provided it does not conflict with the regulations, conditions, and ratios specified in Circular No. (2) of 2016 mentioned above.

2. The implementation of all approvals issued by banks related to financing Letters of Credit in the import hedging format or other financing formats, which are not fully covered by bank clients, is suspended temporarily, until you receive new instructions regarding this matter.

Accordingly, adherence to the subject is requested with due attention, and necessary actions will be taken to implement the aforementioned instructions. All bank branches providing this service will be subject to periodic inspection tasks to ensure compliance, and in case of non-compliance, stipulated penalties will be applied under the provisions of Law No. (1) of 2005 regarding Banks and its amendments.

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

Abdul Hafith Masoud Tribil
Director of Bank Supervision Department / Acting

---

To: Mr. Al-Hafith
Mr. Deputy Minister of Finance
Mr. Head of the Central Sharia Authority - Central Bank of Libya Mr. Accounts Manager - Central Bank of Libya Mr. Director of Legal Affairs Department - Central Bank of Libya Mr. Director of Commercial Operations Department - Central Bank of Libya Mr. Head of the Committee for Covering Banks' Accounts Abroad - Central Bank of Libya To: Managers, Controllers, and Operators of the Central Bank of Libya (excluding seven) To: Directors of Administration and Units at the Center (Audit, Compliance, Treasury Operations) General Supervision, Inspection, and Real Estate Monitoring Department

On April 7, 2016, Abdul Hafith

---

www.cbl.gov.ly, swift code:CBLJLYLX, +218 21 444 1488 : Fax, +218 21 333 3591 : Phone

Media Office
Central Bank of Libya
WWW.CBL.GOV.LY
MEDIA OFFICE
Central Bank of Libya
CENTRAL BANK OF LIBYA