Regulatory Alerts2022-10-04 | 13482Subsidy of Interest on Loans Extended to the Industry, Tourism and Agriculture Sectors
The Central Bank of Lebanon issued Decision No. 13482 to amend Basic Decision No. 7743 by replacing the discontinued LIBOR benchmark with SOFR and ESTR reference rates for US Dollar and Euro loans, respectively. The amendment mandates that interest calculations for affected industrial, tourism, and agricultural sector loans must not exceed the respective three-month compounded average rate plus the ISDA Adjustment Spread and 7%, with quarterly recalculations. Banks are granted until June 30, 2023 to update contracts and information systems before the new rates take effect on July 1, 2023.
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