Central Bank of Libya

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

Reference: 804/N

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

Greetings...

Subject: Regulations governing the use of foreign currency for opening documentary credits.

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

And with reference to Circular No. (3) of 2015, issued on 30/4/2015, which postponed the decision of the Governor of the Central Bank of Libya No. (96) of 2015, regarding the establishment of regulations to govern the use of foreign currency for opening documentary credits and collection documents, and the conditions for opening documentary credits for imports from abroad. And with reference to Circular No. (2) of 2016, issued on 7/1/2016, regarding the regulations, conditions, and procedures governing the opening of documentary credits.

And while we emphasize the necessity of adhering to the regulations issued under the aforementioned instructions, and expediting the necessary procedures to accept applications for opening documentary credits submitted by various entities, and processing them in accordance with the prevailing regulations, we inform you of the instructions of the Central Bank of Libya which decide to add some regulations to govern dealing with documentary credits for importing goods and services from abroad, as follows:

1- Documentary credits covered by bank clients are permitted to be opened, according to the agency formula, and in a manner that does not conflict with the regulations, conditions, and ratios specified under Circular No. (2) of 2016, mentioned above.

2- The execution of all approvals issued by banks related to financing documentary credits in the form of import hedging or other forms of financing not fully covered by bank clients is suspended temporarily, until you are notified of new instructions regarding the same.

Therefore, adherence to this matter with the required attention is requested, and the necessary procedures to implement the aforementioned instructions are to be taken. All bank branches providing this service will be subject to periodic inspection tasks to verify their compliance, and in case of non-compliance, penalties stipulated under the provisions of Law No. (1) of 2005 concerning Banks and its amendments will be applied.

... And peace, mercy, and blessings of God be upon you ...

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Abdul Hafeeth Masoud Tribil Manager of Bank and Currency Supervision Department / Acting

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To the Governor Mr. / Vice-Field Manager of Accounting Mr. / Head of the Central Sharia Supervision Committee . Central Bank of Libya Mr. / Manager of Accounts Department . Central Bank of Libya Mr. / Manager of Legal Affairs Department . Central Bank of Libya Mr. / Manager of Customs Operations Department . Central Bank of Libya Mr. / Head of the Committee for Planning Bank Accounts Abroad . Central Bank of Libya To: Managers, Branches of the Central Bank of Libya (Daghana, Sabaa, Sirte) To: Managers of Administration and Units at the Center (Audit, Internal Control, Funds Control) Financial Department, Bahraini and Revenue Supervision

On 7 April 2016, at Abdul Majid

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

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