Circular No. 707

To Banks and Supervisory Delegates at Banks

Copy of Interim Decision No. 13665 dated September 20, 2024, regarding the amendment of Basic Decision No. 13262 dated August 27, 2020, concerning the exceptional measures to reactivate the work of banks operating in Lebanon attached to Basic Circular No. 154. Beirut, September 20, 2024 Acting Governor of the Central Bank of Lebanon Dr. Wissam Al-Mansouri

Interim Decision No. 13665

Amendment of Basic Decision No. 13262 dated August 27, 2020

The Governor of the Central Bank of Lebanon,
Based on Articles 70 and 174 of the Monetary Law, particularly regarding banking and credit, And on Basic Decision No. 13262 dated August 27, 2020, and its amendments concerning the exceptional measures to reactivate the work of banks operating in Lebanon, And on the recommendation of the Central Bank Council dated September 13, 2024, Has decided as follows:

Article 1: The first paragraph of the third article, amended by the second paragraph of Basic Decision No. 13262 dated August 27, 2020, is amended by changing "five years" to "eight years".

Article 2: The second paragraph of Basic Decision No. 13262 dated August 27, 2020, is repealed and replaced with the following:
"Each bank must maintain a separate, free account for its foreign currency deposits abroad, not less than 3% of the total amount of such deposits in foreign currencies as of July 31, 2024. Banks with non-compliant status have until December 31, 2025 to regularize their status. Included in this ratio:

• The market value of the portfolio of Lebanese Eurobonds (FVPL and FVOCI) held at BLOM Bank PLC and abroad, with prior Central Bank approvals counting.
• The market value of US bonds and other foreign bonds classified as fair value with an 'Investment Grade' rating."

Article 3: This decision takes effect upon issuance.

Article 4: This decision is published in the Official Gazette.

Beirut, September 20, 2024
Acting Governor of the Central Bank of Lebanon Dr. Wissam Al-Mansouri