Circular No. 2/2013

Central Bank of Libya P.O. Box 1103 Telegraphic Addresses: CentralBankOfLibya - Tripoli - Libya

Ref: CBL 804 Circular No. CBL (2/2013) Date: 29 Sha'ban Corresponding to: 10 February 2013

To: General Managers of Commercial Banks To: Heads of Interim Administrative Committees of Commercial Banks To: General Manager / Libyan Foreign Bank

In the Name of God

Based on the provisions of Law No. (1) of 2005 concerning Banks and its amendments;

With reference to our circular CBL No. (2012/116) issued on 29/4/2012, regarding the settlement of dues owed to insurance companies abroad;

With reference to Circular CBL No. (2012/14) issued on 9/5/2012 regarding the settlement of external dues owed to companies affiliated with the telecommunications sector;

With reference to Circular CBL No. (2012/19) issued on 13/10/2012, regarding direct foreign transfers for industrial purposes, which stated in its first paragraph: "Commercial banks are prohibited from executing requests submitted by industrial companies in Libya for the supply of raw materials and operational supplies, and spare parts using direct foreign transfers within the limit of (10%) of the value of the letters of credit that the company opens annually with the bank in a single payment or in installments."

With reference to Circular CBL No. (2013/1) issued on 2/1/2013, which conveyed the decision of the Governor of the Central Bank of Libya No. (1) of 2013, regarding the regulation of foreign currency transactions and the determination of authorities for executing foreign transfers for various purposes.

And in response to requests received by the Central Bank of Libya from certain entities for reconsideration of the transfer ceiling specified in the decision of the Governor of the Central Bank of Libya No. (1) of 2013 mentioned above (including insurance companies, the Steel Company, the General Electricity Company, companies affiliated with the Ministry of Communications and Information, public companies affiliated with the oil and gas sector, and industrial cement companies), as well as requests to exempt certain companies from Paragraph (2) of Article No. (1) of the decision of the Governor of the Central Bank of Libya mentioned.

And given the observations made by the Banking and Currency Supervision Department regarding the frequent receipt of requests from local industrial entities through commercial banks operating in Libya, seeking approval to conduct foreign transfers of various amounts for the purpose of supplying operational requirements and raw materials.

Therefore, and based on the approval of the Governor of the Central Bank of Libya, we inform you that the following has been decided:

(1) Allowing the companies listed below to conduct the foreign transfers referred to in Article (1) of the Governor’s Decision No. (1) of 2013, without adhering to the maximum limit allowed for transfer as stated in the Decision. The concerned companies are:

• Public companies affiliated with the oil and gas sector
• Insurance companies
• The Steel Company
• The General Electricity Company
• Public companies affiliated with the Ministry of Communications and Information
• Airline subscriptions, whether Libyan Airlines or African Airlines (IATA)
• Cement manufacturing companies

(2) Not requiring entities to provide the approval of the relevant Minister for public administrative units and public sector companies.

(3) Continuing to conduct direct foreign transfers for private companies for industrial purposes as stated in the first paragraph of Circular CBL No. (2012/19).

(4) Allowing the execution of requests submitted by various public and private institutions, or natural persons, to convert their holdings in foreign currencies received from abroad according to the authorities contained in Article (1) of the Governor’s Decision No. (1) of 2013.

(5) Commercial banks are authorized to approve the execution of foreign transfers in response to requests submitted by private sector companies to provide supplies (non-commercial purposes) of small value, which are shipped via rapid air transport, within the limit of $10,000.00 (ten thousand US dollars) or its equivalent, regardless of any letters of credit they open for the purpose of providing their various urgent supplies.

"Walid Ali Muhammad Rizq" Dr. Muhammad Abdul Jalil Abusnina Director of Banking and Currency Supervision Department

Copied to:

• The Governor
• The Deputy Governor
• The Deputy of the Auditor General
• The Deputy of the Ministry of Economy
• The Deputy of the Ministry of Finance
• The Deputy of the Ministry of Industry
• The Deputy of the Ministry of Oil and Gas
• The Deputy of the Ministry of Electricity and Renewable Energy
• The Director General of Customs Health
• The President of the Union of Chambers of Commerce and Industry
• The Director of Central Operations System – Central Bank of Libya
• The Director of Contests Management – Central Bank of Libya
• The Director of Licensing Management – Central Bank of Libya
• The Director of Research and Statistics Management – Central Bank of Libya
• The Director of Legal Affairs Management – Central Bank of Libya
• The Director of Central Operations Management – Central Bank of Libya
• The Director of Reserves Management – Central Bank of Libya
• Managers and staff of the Central Bank of Libya (Benghazi – Sabha – Sirte)
• The specialized department in Central Accounting and compliance levels

Duplicate * 1. Copy * Printed

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