Central Bank of Libya

P.O. Box 11103, Al-Sawani
Tripoli, Libya - Misrata

Reference: 804 Dr. M.N.
Circular No. (22/2)
Date: 06 Rabi' al-Akhir 1444 AH
Corresponding Date: 01 November 2022

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Sixth / General Managers of Banks

Greetings,

Based on the provisions of Law No. (1) of 2005 concerning Banks and its amendments, and within the framework of the Central Bank of Libya's monitoring of banks' conditions in accordance with the provisions of the aforementioned law.

And implementing Circular No. (2007/2) issued by the Banking and Currency Supervision Administration on January 4, 2007, regarding the bases and standards for classifying debts and the minimum thresholds for provisions required against them.

And with reference to Circular No. (2019/7) issued by the Banking and Currency Supervision Administration on September 11, 2019, which was referred to by the decision of the Governor of the Central Bank of Libya, No. (201) of 2019, issued on 21/08/2019, regarding the approval of the Special Bank Code (CBL.KEY) regulations, and what Article (3) of the aforementioned decision contained "Conditions for granting the Bank Code, Paragraph No. (2-d)" that "the applicant has not recorded any failure cases among them." One of which is the default in settling obligations arising from a banking facility, and default is achieved in accordance with the instructions of the Central Bank of Libya".

And within the framework of the Banking and Currency Supervision Administration's follow-up of the financial conditions of banks and their financial preservation, and to limit the risks resulting from default in settling existing obligations by individuals (individuals – legal entities) within the specified deadlines, and to preserve the financial position of banks and depositors' funds to ensure the stability of the banking sector.

Therefore, the office requests informing the Libyan Credit Information Center at the Central Bank of Libya of the details of the granted and defaulted financing facilities for individuals and legal entities, in order to take the necessary procedures to suspend the Bank Code (CBL.KEY) until their situations are settled, implementing Circular No. (2019/7) mentioned above, taking into account granting defaulters in payment (individuals – legal entities) a maximum deadline of two weeks to settle their situations with the banks.

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

Naji Muhammad Isa
Director of the Banking and Currency Supervision Administration

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Copy to Mr. / The Governor

Copy to Mr. / Chairman of the Board of Directors at the Banks Copy to Mr. / Director of the Libyan Credit Information Center - Central Bank of Libya Copy to Mr. / Director of the Accounting Administration - Central Bank of Libya Copy to Mr. / Director of the Legal Administration - Central Bank of Libya Copy to Mr. / Director of Environmental Financial Information Quality - Central Bank of Libya Copy to Mr. / Deputy Director of the Banking and Currency Supervision Administration Copy to Mr. / Deputy Director of the Banking and Currency Supervision Administration for Wise Supervision and Compliance Follow-up Affairs Copy to Mr. / Deputy Director of the Banking and Currency Supervision Administration for Islamic Banking Affairs Copy to Mr. / Deputy Director of the Banking and Currency Supervision Administration for Inspection Affairs Copy to Messrs. / Risk Department Managers at the Banks ((Results)) Copy to Messrs. / Compliance Department Managers at the Banks ((Results)) Copy to Messrs. / Heads of Compliance Units at the Banks ((Results)) Copy to the Department / Banking Follow-up and Compliance Monitoring

1- Ain. Correspondence / 2022/