The Status of the Central Office of Credit Risk

Central Bank Circular No. 695 To Banks, Financial Institutions, and Leasing Companies

We hereby refer you to Decision No. 13637 dated May 29, 2024, concerning the amendment of a copy of the table "Credit Type Codes (01CTC)" attached to Base Decision No. 7705 dated October 26, 2000, concerning the Central Credit Risk Department system, subject of Basic Circular No. 75.

Beirut, May 29, 2024 Acting Governor of the Central Bank of Lebanon Dr. Wissam Mansouri

Central Bank Decision No. 13637 Amendment of the "Credit Type Codes (01CTC)" table attached to Base Decision No. 7705 dated October 26, 2000, concerning the Central Credit Risk Department system.

The Acting Governor of the Central Bank of Lebanon, Pursuant to the Monetary and Loan Law, particularly Articles 147 and 179 thereof, And pursuant to Article 3 of the Implementing Law by Decree No. 5439 dated September 20, 1982, And pursuant to Base Decision No. 7705 dated October 26, 2000, concerning the Central Credit Risk Department system, And pursuant to a decision of the Central Council of the Central Bank of Lebanon taken in its meeting held on May 28, 2024,

Has decided as follows:

Article One: The codes appearing in the attached appendix are added to the "Credit Type Codes (01CTC)" table (in Arabic and French) attached to the Central Credit Risk Department system subject of Base Decision No. 7705 dated October 26, 2000.

Article Two: This decision takes effect as of March 20, 2024.

Article Three: This decision shall be published in the Official Gazette. Beirut, May 29, 2024 Acting Governor of the Central Bank of Lebanon Dr. Wissam Mansouri

Credit Type Codes (In Cash/Fresh Currency) F7a: Other Housing Loans (In Cash). F1c: Debtors under Credit Cards (In Cash) payable in monthly installments. F2c: Debtors under Charge Cards (In Cash) payable in a single payment at the end of the billing cycle. F1d: Doubtful or Bad Debts (In Cash) to customers – Mechanical sorting code 11740 in the banking sector (Form 2010). These refer to debts for which the Banking Control Committee has approved partial or full provisioning, and their balance is recorded in the Risk Centralization as principal and unrealized interest. F2d: Suspended Debts (In Cash) pending collection. F3d: Disputed Debts (In Cash) – referring to debts before judicial authorities due to an ongoing dispute between the debtor and creditor, not yet adjudicated. F1e: Commercial Bills (In Cash) with recourse. F2e: Commercial Bills (In Cash) without recourse. F3e: Factoring Operations – Purchased Debts (In Cash) with recourse. F4e: Factoring Operations – Purchased Debts (In Cash) without recourse. F0h: Small Loans in Lebanese Lira granted (In Cash) directly by banks. F3h: Small Loans in Lebanese Lira (In Cash) financed by financial institutions and granted by them or from microfinance institutions. iF: Housing Loans (In Cash) granted by the Housing Bank and financed by loans granted to it. F1if: Murabaha (In Cash). F2if: Ijara (In Cash). F3if: Bay’ Salam (In Cash) (mostly agricultural products). F4if: Istisna’ (In Cash). iqF: Qard Hasan (In Cash). ioF: Other Islamic Financing (In Cash). kF: Debtors (In Cash) under Acceptances (Mechanical sorting code 11800 in the banking sector, Form 2010). F1l: Leasing Operations (In Cash) non-subsidized (Base Decision No. 7540 dated March 4, 2000). lcF: Letters of Credit (In Cash). F1lg: Bid Bonds/Guarantees for Tenders (In Cash). F2lg: Performance Guarantees (In Cash). F3lg: Monetary Guarantees (In Cash/Fresh). F4lg: Other Guarantees (In Cash). oF: Non-Financial Sector Bonds (In Cash) issued by unaffiliated non-financial entities and purchased from banks (Mechanical sorting code 15643 + 16804 in the banking sector, Form 2010). F1x: Loans (In Cash) granted against commercial mortgage or unapproved machinery/vehicles/goods by the Banking Control Committee. These shall be transferred to the "Advances against other real securities (ASR)" box in the "Declaration to the Risk Centralization – Direct Commitments", upon approval by the Banking Control Committee. F2x: Loans (In Cash) granted against assignment of advances on forward markets (marché sur avances). F1z: Other Facilities (In Cash) in current accounts. F2z: Other Facilities (In Cash) in the form of direct bills/notes. F3Z: Other Facilities (In Cash) in specified advance accounts.

Credit Type Codes (French Section) a7F: Other housing loans (In Cash). c1F: Debtors by credit cards (In Cash) with monthly payments. c2F: Debtors by payment cards (In Cash) with balance payable at the end of the billing cycle. d1F: Claims (In Cash) doubtful or uncollectible (State 2010 - Mechanical code 11740) for which the CCB has authorized partial or total provisions. Their balance must appear at the CDR, as principal and unrealized interest. d2F: Debts (In Cash) pending collection. d3F: Claims (In Cash) litigious. e1F: Discount of commercial bills (In Cash) with recourse. e2F: Discount of commercial bills (In Cash) without recourse, except those mentioned under code b22. e3F: Factoring – Claims (In Cash) purchased with recourse. e4F: Factoring - Claims (In Cash) purchased without recourse. h0F: Microcredits in L.L. (In Cash) granted by banks. h3F: Microcredits in L.L. (In Cash) financed by financial institutions through credits granted by them or by microcredit institutions. iF: Housing loans (In Cash) financed by loans granted to the housing bank. if1F: Mourabaha (In Cash). if2F: Ijara (In Cash). if3F: Bay’ salam (In Cash). if4F: Istisna’(In Cash). iqF: Kard Hasan (In Cash). ioF: other Islamic financings (In Cash). kF: Acceptations. (In Cash) (State 2010 - Mechanical code 11800). l1F: Credit-leasing operations (In Cash) non-subsidized (Base Decision No. 7540 of 4/3/2000). lcF: Letters of Credit (In Cash). lg1F: Guarantee letters for tenders (In Cash). lg2F: Guarantee letters of good execution (In Cash). lg3F: Monetary guarantee letters (In Cash). lg4F: Other Guarantee Letters (In Cash). oF: Bonds of the non-financial unaffiliated sector (In Cash) (State 2010 - Mechanical code 15643 +16804) x1F: Advances (In Cash) on pledges of business funds or equipment or vehicles or goods not approved by the Banking Control Commission. N.B.: will be transferred to the box “Advances on other real securities ASR” in the ”Declaration to the Risk Centralization – Direct Commitments”, as soon as they are approved by the CCB. x2F: Advances on forward market (In Cash). z1F: Other Advances in current account (In Cash). z2F: Other Advances on commercial bills (In Cash). z3F: Other loans with fixed maturity (In Cash).