Regulatory Alerts2018-02-20 | 12761Financial Facilities from BDL to Banks and Financial Institutions
The Central Bank of Lebanon issued Intermediary Circular 486 on February 20, 2018, to amend Decision No. 6116 regarding the financial facilities available to banks and financial institutions. This regulation replaces the previous BDL-PB table with a new schedule that defines specific loan categories, maximum interest rates, and maximum support levels granted by the Central Bank. The updated framework covers various sectors including housing, education, small enterprises, and environmentally friendly projects, establishing precise formulas for calculating interest rate margins and subsidies.
Intermediary Circular 486
To Banks and Financial Institutions
We enclose for your reference Circular No. 12761 dated 20/2/2018 concerning the amendment of Decision No. 6116 dated 7/3/1996 (The Facilities that the Central Bank of Lebanon may grant to Banks and Financial Institutions), attached to Basic Circular No. 23.
Beirut, February 20, 2018
Governor of the Central Bank of Lebanon
Riad T. Safre
Intermediary Decision No. 12761
Amendment of Basic Decision No. 6116 dated 7/3/1996
The Governor of the Central Bank of Lebanon, Pursuant to the Monetary and Loan Law, particularly Articles 174, 70, 79, and 99 thereof, And pursuant to Basic Decision No. 6116 dated 7/3/1996 and its amendments concerning the Facilities that the Central Bank of Lebanon may grant to Banks and Financial Institutions, And pursuant to the Decision of the Central Council of the Central Bank of Lebanon taken during its session held on 15/2/2018,
Has decided as follows:
Article 1: The text of the table (BDL-PB) attached to Basic Decision No. 6116 dated 7/3/1996 is repealed and replaced by the new text attached to this Decision.
Article 2: This Decision shall take effect immediately upon its issuance.
Article 3: This Decision shall be published in the Official Gazette.
Beirut, February 20, 2018
Governor of the Central Bank of Lebanon
Riad T. Safre
Central Bank of Lebanon – Financing Unit Statement of Decision No. 6116 dated 7/3/1996 Basic Circular No. 23 Table No. BDL - PB
| Serial No. | Category Code | Loan Type | Description of Loans | Maximum Support Granted by Central Bank of Lebanon | Maximum Interest Rate and Margin on Loan | Category Code | Loan Type |
|---|---|---|---|---|---|---|---|
| 9 | HIN9 | Residential Loans | Residential loans in Lebanese Lira granted in accordance with the conditions stipulated in the "First" paragraph of Article 10 bis of Basic Decision No. 7835 dated 2/6/2001. | Lending Rate Index of the Central Bank of Lebanon minus 3.75% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | n27k | |
| 10 | k07p | Residential Loans | Residential loans in Lebanese Lira granted pursuant to the Protocol signed with the General Establishment for Housing. | Lending Rate Index of the Central Bank of Lebanon minus 4.72% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | HEPH | |
| 11 | HMLT | Residential Loans | Residential loans in Lebanese Lira granted pursuant to the Protocol signed between Banks and the Housing Agency for Volunteer Military Personnel. | Lending Rate Index of the Central Bank of Lebanon minus 5.872% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | m1 | |
| 12 | HJUR | Residential Loans | Residential loans in Lebanese Lira granted pursuant to the Cooperation Protocol signed between Banks and the Judges' Mutual Aid Fund. | Lending Rate Index of the Central Bank of Lebanon minus 5.872% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | jr | |
| 13 | HDPL | Residential Loans | Residential loans in Lebanese Lira granted to displaced persons pursuant to the Cooperation Protocol signed between Banks and the Ministry of Displaced Persons. | Lending Rate Index of the Central Bank of Lebanon minus 5.872% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | dp | |
| 14 | HFSI | Residential Loans | Residential loans in Lebanese Lira granted pursuant to the Cooperation Protocol signed between Banks and the General Directorate of Internal Security Forces. | Lending Rate Index of the Central Bank of Lebanon minus 5.872% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | fs | |
| 15 | HDSG | Residential Loans | Residential loans in Lebanese Lira granted pursuant to the Cooperation Protocol signed between Banks and the General Directorate of General Security. | Lending Rate Index of the Central Bank of Lebanon minus 5.872% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | sg | |
| 16 | EDUS | Loans | Loans in Lebanese Lira granted to students pursuing higher education. | Lending Rate Index of the Central Bank of Lebanon minus 4.5% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | u | Higher Education Institutions |
| 20 | HABT | Residential Loans | Residential loans in Lebanese Lira granted by Housing S.A.L. and financed by Banks. | Lending Rate Index of the Central Bank of Lebanon minus 4.75% | Difference between Loan Interest/Margin granted to Housing S.A.L. and Lending Rate Index of the Central Bank of Lebanon + 1% | 7a | |
| 21 | MICR | "Small Loans" | "Small loans" granted in Lebanese Lira directly by "Microfinance Institutions" or financial institutions and financed by loans granted to them by Banks in Lebanese Lira. | Lending Rate Index of the Central Bank of Lebanon minus 2.5% | Difference between Loan Interest/Margin granted to "Microfinance Institution" or financial institutions and Lending Rate Index of the Central Bank of Lebanon + 1% | h21-h22 | |
| 26 | GSSE | Loans | Loans granted in Lebanese Lira to productive sectors within the "SME Guarantee Program". | Lending Rate Index of the Central Bank of Lebanon minus 2.5% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | t | |
| 28 | HDSE | Residential Loans | Residential loans granted in Lebanese Lira pursuant to the Cooperation Protocol signed between Banks and the General Directorate of State Security. | Lending Rate Index of the Central Bank of Lebanon minus 5.872% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | Se | |
| 29 | HADD | Residential Loans | Residential loans granted in Lebanese Lira pursuant to the Cooperation Protocol signed between Banks and the Customs Authority. | Lending Rate Index of the Central Bank of Lebanon minus 5.872% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | Ad | |
| 33 | HPMP | Residential Loans | Residential loans granted in Lebanese Lira pursuant to the Cooperation Protocol between Banks and the Fire Brigade. | Lending Rate Index of the Central Bank of Lebanon minus 5.872% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | ppk | |
| 34 | HGMB | Residential Loans | Residential loans granted in Lebanese Lira pursuant to the Cooperation Protocol between Banks and the Beirut Municipality Guard Brigade. | Lending Rate Index of the Central Bank of Lebanon minus 5.872% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | gbk | |
| 36 | INFED | Loans | Dollar-denominated loans to finance environmentally friendly energy projects financed by the EIB and AFD, which benefit from state interest subsidies. | Lending Rate Index of the Central Bank of Lebanon minus 5.75% | Difference between Loan Interest/Margin and (EIB and AFD margin + 0.5%) + (Central Bank of Lebanon commission + 2%) | a12 | |
| 37 | WBEVD | Loans | Dollar-denominated loans to finance environmentally friendly projects for pollution reduction financed by the World Bank, which benefit from state interest subsidies. | Lending Rate Index of the Central Bank of Lebanon minus 6% | Difference between Loan Interest/Margin and (World Bank margin + 0.5%) + (Central Bank of Lebanon commission + 2%) | A11,a12 | |
| 38 | RDEVD | Loans | Dollar-denominated loans for research and development purposes in productive sectors. | Lending Rate Index of the Central Bank of Lebanon minus 4.50% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | rdd | |
| 39 | ENVED | Loans | Dollar-denominated loans to finance environmentally friendly energy projects benefiting from state interest subsidies, where each loan exceeds $20,000, provided that the value of a single loan does not exceed $20,000,000. | Lending Rate Index of the Central Bank of Lebanon minus 5.25% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | ev2d | |
| 41 | IN09D | Loans | Non-residential loans granted in US Dollars in accordance with the conditions stipulated in the "First" paragraph of "Article 10 bis" of Basic Decision No. 7835 dated 2/6/2001. | Lending Rate Index of the Central Bank of Lebanon minus 0.60% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | n09d, n19d | |
| 44 | EVESD | Loans | Dollar-denominated loans exceeding $20,000 each, benefiting from state interest subsidies to finance environmentally friendly energy projects. | Lending Rate Index of the Central Bank of Lebanon minus 4.50% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | d2ev | |
| 46 | ENTPD | Loans | Dollar-denominated loans granted to entrepreneurs and innovators to establish new projects in the field of knowledge and creativity. | Lending Rate Index of the Central Bank of Lebanon minus 4.50% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | cind | |
| 47 | DENVP | Loans | Dollar-denominated loans to finance environmentally friendly projects for pollution reduction, benefiting from state interest subsidies. | Lending Rate Index of the Central Bank of Lebanon minus 5.50% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | 12a 11,a | |
| 48 | EVNED | Loans | Dollar-denominated loans to finance the environmental component of environmentally friendly projects outside the energy sector, benefiting from state interest subsidies, provided that the value of a single loan exceeds $20,000,000. | Lending Rate Index of the Central Bank of Lebanon minus 5.25% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | d1ev | |
| 53 | EVRED | Loans | Dollar-denominated loans to support villages and rural areas to finance environmentally friendly energy and renewable energy projects benefiting from state interest subsidies, where each loan exceeds $20,000. | Lending Rate Index of the Central Bank of Lebanon minus 4.50% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | ev2d | |
| 54 | EVRND | Loans | Dollar-denominated loans to support villages and rural areas to finance environmentally friendly energy and renewable energy projects benefiting from state interest subsidies, where each loan exceeds $20,000. | Lending Rate Index of the Central Bank of Lebanon minus 4.50% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | ev2d | |
| 55 | PLEAD | Loans | Dollar-denominated loans to finance the production of Lebanese artistic works (cinematic or television films, narrative or documentary or educational, or theatrical works). | Lending Rate Index of the Central Bank of Lebanon minus 5.25% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | ead | |
| 56 | HCMA | Residential Loans | Residential loans granted in Lebanese Lira to employees of the Capital Markets Authority. | Lending Rate Index of the Central Bank of Lebanon minus 5.872% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | cma | |
| 57 | HCCA | Residential Loans | Residential loans granted in Lebanese Lira to users of the Supervisory Commission of Guarantee Bodies. | Lending Rate Index of the Central Bank of Lebanon minus 5.872% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | cca | |
| 58 | HEMG | Residential Loans | Dollar-denominated residential loans granted to expatriates. | Lending Rate Index of the Central Bank of Lebanon minus 3.5% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | emh | |
| 59 | PEMG | Loans | Dollar-denominated non-residential loans granted to expatriates. | Lending Rate Index of the Central Bank of Lebanon minus 2.5% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | emp | |
| 60 | PPKG | Loans | Dollar-denominated loans granted to the general public for the purpose of renting parking spaces. | Lending Rate Index of the Central Bank of Lebanon minus 2.25% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | pkgd | |
| 61 | WCEX | Loans | Loans granted in foreign currency to industrial institutions to finance working capital against exports. | Lending Rate Index of the Central Bank of Lebanon minus 2.5% | Difference between Loan Interest/Margin and Lending Rate Index of the Central Bank of Lebanon + 1% | ced |
Note:
- To use the "Lending Rate Index of the Central Bank of Lebanon", please contact the Financing Unit at the Central Bank of Lebanon.
- The Lending Rate Index of the Central Bank of Lebanon is applied in US Dollars for loans granted in US Dollars.
- The Lending Rate Index of the Central Bank of Lebanon is applied in Lebanese Lira for loans granted in Lebanese Lira.
Share