Central Bank of Libya

P.O. Box 1103, Tripoli - National Transitional Council - Libya

Telegram Address: Libyabank, Tripoli

Circular No. 10/2011
Date: 18 Dhu al-Hijjah 1432 AH
Corresponding Date: November 14, 2011 AD
Reference: 804/C.B.S.

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

In the name of God...

To the Governor of the Central Bank of Libya, with reference to letter No. M. 2011/11 dated 19.09.2011, which requested taking necessary measures regarding certain topics, including loans and credit facilities granted during the period of the February 17 Revolution, and requested providing the Central Bank of Libya with data regarding them.

And considering that some banks granted insurance in various forms, direct credit (loans, credit facilities, overdrafts) and indirect credit (suspension of drawn credits, public credits, guarantee letters) to some figures of the former regime, during the period of the February 17 Revolution, and before it, and due to the credit risks associated with the status of the insured and the possibilities of default in collecting this credit and its effects on the financial positions of banks.

Therefore, and regarding the directives of the Governor of the Central Bank of Libya, you are requested to take all necessary measures to hedge against risks associated with credits granted to figures of the former regime, as follows:

1. Pursue all means to collect and follow up on funds held by borrowers.
2. Study and present the status of all debts associated with them, and classify them according to the instructions of the Central Bank of Libya, and make the necessary provisions against them.
3. Inventory all guarantees provided against these debts, and take the necessary legal measures regarding them, to recover the banks' rights, in accordance with the provisions of Law No. (1) of 2005 regarding Banks.

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4. The possibility of inventorying the free assets of figures of the former regime, and taking the necessary legal measures to seize them to recover the banks' rights.
5. Providing the Banking and Currency Supervision Department with all data related to these debts, and the measures taken by the banks regarding them.

And God is the Best of Guardians.

Dr. Muhammad Abdul Jalil Abu Sineena
Director of the Banking and Currency Supervision Department

Copies to:

• The Governor
• The Deputy Governor
• The Director of the Legal Department - Central Bank of Libya
• The Banking Follow-up and Compliance Supervision Department