Regulatory Alerts2022-06-07
Periodic Letter (118 – 2017)
The Central Bank of Libya issued Periodic Letter No. 118 (2017) exempting pharmaceutical and medical equipment importers from the standard deposit requirement when covering irrevocable letters of credit, provided coverage is executed via certified checks or RTGS transfers and the companies maintain valid contracts with the Ministry of Health and the Medical Supply Authority. This directive modifies the capital-to-LC value ratio by allowing direct coverage without additional deposits, contingent upon continuous cash flows proportional to business volume. Banks are instructed to apply these exemptions immediately and ensure strict compliance with the updated operational guidelines for foreign currency transactions.
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