Regulatory Alerts2021-05-28 | 13330International Financial Reporting Standard No. 9 (IFRS 9) – Central Bank of Lebanon Circular Decision No. 13330 Amending Decision No. 12713
The Central Bank of Lebanon issued Circular Decision No. 13330 to amend Decision No. 12713 regarding the application of International Financial Reporting Standard No. 9 (IFRS 9). The directive extends the deadline for non-reducing loan classifications for coronavirus-affected customers to June 30, 2021 and mandates that banks complete future financial situation assessments by the same date. Furthermore, it requires expected credit loss expenses to be calculated based on these post-assessment results and fully recorded in the 2021 profit or loss statement.
Circular No. 584
To Banks, Financial Institutions, and Supervisory Agents
We submit to you Circular No. 13330 dated May 28, 2021, concerning the amendment of a version of Decision No. 12713 dated November 7, 2017 (Application of International Financial Reporting Standard No. 9 (IFRS 9)) (attached to Circular No. 143).
Beirut, May 28, 2021
Governor of the Central Bank of Lebanon
Riad Toufic Salam
Circular Decision No. 13330 Amending Decision No. 12713 dated November 7, 2017
The Governor of the Central Bank of Lebanon, pursuant to the Monetary and Loan Law, particularly Articles 174 and 175 thereof, pursuant to Decision No. 12713 dated November 7, 2017 and its amendments regarding the application of International Financial Reporting Standard No. 9 (IFRS 9), and pursuant to a decision by the Central Bank Council taken in its meeting held on May 12, 2021, hereby decides as follows:
Article One: The deadline specified in the "first" paragraph of Article Seven repeated from Decision No. 12713 dated November 7, 2017 and concerning the non-reduction of loan classifications for customers affected by the spread of the coronavirus is extended until June 30, 2021.
Article Two: The text of the "fourth" paragraph of Article Seven repeated from Decision No. 12713 dated November 7, 2017 is repealed and replaced with the following: "Fourth: Banks and financial institutions shall continue to assess customers' future financial situations, with the assessment to be completed no later than June 30, 2021. Expected credit loss expenses shall be calculated based on this assessment only after the aforementioned date, while observing the provisions of the "second" paragraph, and shall be fully recorded in the profit or loss statement for the year 2021."
Article Three: This decision takes effect upon issuance.
Article Four: This decision shall be published in the Official Gazette.
Beirut, May 28, 2021
Governor of the Central Bank of Lebanon
Riad Toufic Salam