Regulatory Alerts2010-04-05
Added · Updated
Central Bank of Libya Decision No. 7 of 2010 on Rules and Standards for Debt Write-offs
The Central Bank of Libya mandates that commercial banks may only write off or cancel debts after they have been classified as doubtful or bad for at least five years, or three years if the debt value does not exceed 3,000 Libyan Dinars. Banks are required to maintain 100% provisions for such debts, obtain external auditor reviews, and secure approval from the Banking and Currency Supervision Department before proceeding. The decision further requires banks to maintain off-balance sheet records of written-off debts to preserve the right to pursue recovery if the debtor's financial situation improves.
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