Facilities that may be granted by BDL to banks and financial institutions

Intermediary Circular No. 585

To Banks and Financial Institutions

We present to you Intermediary Decision No. 11331 dated May 28, 2021 concerning the amendment of Basic Decision No. 6116 dated March 7, 1996 (Facilities that may be granted by Banque du Liban to banks and financial institutions) attached to Basic Circular No. 23.

Beirut, May 28, 2021
Governor of Banque du Liban

Riad T. Sawmeh

Intermediary Decision No. 11333

Amending Basic Decision No. 6116 dated March 7, 1996

The Governor of Banque du Liban,
Pursuant to the Monetary and Loan Law, particularly Article 70 thereof, And pursuant to Basic Decision No. 6116 dated March 7, 1996 and its amendments concerning the facilities that may be granted by Banque du Liban to banks and financial institutions, And pursuant to the resolution of the Central Council of Banque du Liban adopted in its meeting held on May 26, 2021,

Decrees as follows:

Article One: The text of paragraph (1) of "Article 14 bis" of Basic Decision No. 6116 dated March 7, 1996 is repealed and replaced by the following text:
"1 - Licensed industrial institutions operating in Lebanon may request Banque du Liban to secure 90% of the value of imported raw materials or industrial equipment essential to the relevant industry, in foreign currency, to meet their needs. The total remaining balance shall be up to 100 million US dollars, or its equivalent in other foreign currencies. Provided that the client does not benefit from the provisions of this article for any import operation up to a maximum limit of 300,000 US dollars or its equivalent in foreign currency, and provided that the total amount benefited by the client does not exceed 5 million US dollars or its equivalent in foreign currency."

Article Two: The text of paragraph (4) of "Article 14 bis" of Basic Decision No. 6116 dated March 7, 1996 is repealed and replaced by the following text:
"4 - Industrial institutions benefiting from the provisions of this article and engaged in exports must remit all foreign currency generated from export operations to a new (fresh) account at the relevant bank in Lebanon.

The client has the freedom to use these funds to avail themselves of all banking services provided by the bank, including foreign transfers, cash withdrawals, and bank card services in Lebanon and abroad."

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Article Three: The provisions of "Article 14 bis" of Basic Decision No. 6116 dated March 7, 1996 are extended for a period of 6 months.
Article Four: This decision shall take effect upon its issuance.
Article Five: This decision shall be published in the Official Gazette.

Beirut, May 28, 2021
Governor of Banque du Liban

Riad T. Sawmeh