Issuing of Certificates of Deposit & Banking Certificates and Bonds

Intermediary Circular No. 541

To Banks and Financial Institutions And to Supervisory Commissioners

We enclose a copy of Intermediary Decision No. 13187 dated 30/1/2020 regarding the amendment of:

• The foundational Decision No. 6856 dated 19/12/1997 (Debt securities that may be issued by Lebanese banks and financial institutions) attached to foundational Circular No. 36.
• The foundational Decision No. 7224 dated 11/2/1999 (System for issuing certificates of deposit and banking certificates) attached to foundational Circular No. 61.

Beirut, on January 30, 2020

Governor of the Central Bank of Lebanon

Riad T. Salam

......

Intermediary Decision No. 13187 Amendment of Foundational Decision No. 6856 dated 19/12/1997 and Foundational Decision No. 7224 dated 11/2/1999

The Governor of the Central Bank of Lebanon,

Pursuant to the Monetary and Loan Law, specifically Articles 174 and 70 thereof,

And pursuant to Foundational Decision No. 6856 dated 19/12/1997 and its amendments regarding debt securities that may be issued by Lebanese banks and financial institutions,

And pursuant to Foundational Decision No. 7224 dated 11/2/1999 and its amendments regarding the system for issuing certificates of deposit and banking certificates,

In the public interest under the current exceptional circumstances the country is going through,

And to preserve

And based on the authorities vested in the Governor to ensure the operation of the Central Bank of Lebanon based on the principle of continuity of the public service,

Decides as follows:

Article One: Article 6 bis is added to Foundational Decision No. 6856 dated 19/12/1997 with the following text:

"Article 6 bis: The principal and interest of all debt securities issued by banks and financial institutions operating in Lebanon and negotiable securities representing support loans, deposited with custodians in Lebanon, shall be paid into open accounts at banks operating in Lebanon.

The same exceptional procedures applied by Euroclear S.A.N.V. shall apply to the conversion of all debt securities and negotiable securities referred to in this Article to abroad."

Article Two: "Article 20" is added to the system attached to Foundational Decision No. 7224 dated 11/2/1999 with the following text:

"Article 20: The principal and interest of all certificates of deposit and banking certificates issued by banks operating in Lebanon and deposited with custodians in Lebanon shall be paid into open accounts at banks operating in Lebanon.

The same exceptional procedures applied by Euroclear S.A.N.V. shall apply to the conversion of all certificates of deposit and banking certificates referred to in this Article to abroad."

Article Three: This Decision shall be effective upon its issuance for a period of six months from its date.

Article Four: This Decision shall be published in the Official Gazette.

Beirut, on January 30, 2020

Governor of the Central Bank of Lebanon

Riad T. Salam