Regulatory Alerts1996-03-07 | 6116Facilities that may be granted by BDL to banks and financial institutions
The Central Bank of Lebanon issued Basic Decision No. 6116 and its accompanying circular to establish a comprehensive regulatory framework for facilities granted to banks and financial institutions, setting a 30% maximum limit on own funds for commercial and private bonds while mandating strict compliance, risk management, and reporting standards. The regulation details eligibility criteria for start-ups, incubators, accelerators, and Capital Venture companies, permitting interest-free USD loans up to seven years for equity participation without collateral, subject to a 4% own funds cap and active management obligations. It further mandates rigorous documentation, quarterly and annual reporting, specific fund deployment rules, and clear procedures for share disposal and profit distribution to ensure alignment with Lebanon’s economic growth and knowledge-based objectives.