Exceptional Exemptions from Banks’ Mandatory Placements

Central Bank Circular No. 764 for Banks

We hereby enclose a copy of Central Bank Decision No. 13818 dated May 8, 2026, concerning the amendment of Basic Decision No. 13217 dated April 9, 2020, concerning exceptional exemptions from banks’ mandatory placements, attached to Basic Circular No. 150.

Beirut, May 8, 2026

Governor of the Central Bank of Lebanon
Karim Saeed

Central Bank Decision No. 13818
Amendment of Basic Decision No. 13217 dated April 9, 2020

The Governor of the Central Bank of Lebanon,
Pursuant to the Monetary and Exchange Law, particularly Articles 70 and 174 thereof, And based on Basic Decision No. 13217 dated April 9, 2020, and its amendments concerning exceptional exemptions from banks’ mandatory placements, And based on the decision of the Central Council of the Central Bank of Lebanon adopted in its meeting held on May 6, 2026, Decides as follows:

Article One: The text of "Article Three (duplicate)" in Basic Decision No. 13217 dated April 9, 2020 is repealed and replaced with the following text:

« Each bank must deposit cash in its own custody or with its correspondents abroad in an account free from any obligations, or at the Central Bank of Lebanon in a "Cash Funds" account specified in Basic Decision No. 13548 dated April 19, 2023 (Basic Circular No. 165), equivalent to a percentage of 100% of the value of "Cash Funds" in foreign currencies, as defined in Basic Decision No. 13548 referenced above, provided that this percentage is established prior to the external liquidity ratio specified in Basic Decision No. 13262 dated August 27, 2020 (Basic Circular No. 154).

Foreign banks' branches are exempt from adhering to the aforementioned 100% ratio, provided that the parent bank covers any liabilities related to "Cash Funds" for its branch in Lebanon.

Included in this ratio are:

• The value of bonds specified in paragraphs (a) and (b) under items (2) of Section "First" of Article
  One of Basic Decision No. 7274 dated April 15, 1999 (Basic Circular No. 62) and classified at fair value.
• The value of the portfolio of Lebanese Treasury bonds in foreign currencies (Eurobonds) (classified at fair
  value.

Banks may sell Lebanese Treasury bonds in foreign currencies (Eurobonds), provided that the amounts resulting from the sale are used primarily as follows:

• To secure liquidity to meet the requirements of Basic Decision No. 13335 dated June 8, 2021
  for a period of one year.
• To finance their commercial and investment operations, provided they are not used to finance operational expenses.

Banks in a non-compliant status with the provisions of this Article must retain Lebanese Treasury bonds in foreign currencies (Eurobonds) equivalent to twice the shortfall in the required ratio to cover this deficit, and must not sell or dispose of them throughout the duration of this shortfall.

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Noting that funds deposited in "Special Accounts" opened pursuant to the provisions of Article Two of Basic Decision No. 13262 dated August 27, 2020 are not subject to this obligation but remain solely governed by the provisions of Basic Decision No. 13262 dated August 27, 2020 referenced above under which they were established.»

Article Two: This Decision takes effect upon its issuance.
Article Three: This Decision is published in the Official Gazette.

Beirut, May 8, 2026
Governor of the Central Bank of Lebanon
Karim Saeed