Regulatory Alerts2023-01-31 | 13531Facilities that may be granted by BDL to banks and financial institutions, Aid to those affected by the explosion at the Port of Beirut, and Exceptional restrictions relating to some banking operations
Banque du Liban’s Governor issued Intermediary Decision No. 13531 to amend three foundational banking regulations, specifically repealing Article Fourteen of Decision No. 6116 and replacing key provisions in Decisions No. 13254 and No. 13353. The amended provisions authorize banks to accept Lebanese Lira repayments for exceptional client loans at the official 1,500 LL/USD exchange rate and mandate that foreign currency trading with clients (excluding "new money") strictly follows the rates set in Decision No. 13221. This regulatory update, effective February 1, 2023, streamlines currency conversion mechanisms and reinforces exceptional operational restrictions for Lebanese financial institutions.
Intermediary Circular No. 661 To Banks and Financial Institutions
We enclose a copy of Intermediary Decision No. 13531 dated January 31, 2023, 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.
- Basic Decision No. 13254 dated August 6, 2020 (Aid to those affected by the explosion at the Port of Beirut) attached to Basic Circular No. 152.
- Basic Decision No. 13353 dated August 17, 2021 (Exceptional restrictions relating to some banking operations) attached to Basic Circular No. 159.
Beirut, on January 31, 2023 Governor of Banque du Liban Riad T. Salamé
Intermediary Decision No. 13531 Amending Basic Decision No. 6116 dated March 7, 1996 and Basic Decision No. 13254 dated August 6, 2020 and Basic Decision No. 13353 dated August 17, 2021
The Governor of Banque du Liban, pursuant to the Monetary and Loan Law, particularly Articles 70, 79, and 174 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 Basic Decision No. 13254 dated August 6, 2020 and its amendments concerning aid to those affected by the explosion at the Port of Beirut, and pursuant to Basic Decision No. 13353 dated August 17, 2021 and its amendments concerning exceptional restrictions on some operations carried out by banks, and pursuant to the decision of the Central Council of Banque du Liban taken in its meeting held on January 18, 2023,
hereby decides as follows:
Article One: The text of "Article Fourteen" of Basic Decision No. 6116 dated March 7, 1996 is repealed.
Article Two: The text of the beginning of the second paragraph of Item (4) of Article One of Basic Decision No. 13254 dated August 6, 2020 is repealed and replaced with the following text: "The exceptional loan granted to the client may be repaid in Lebanese Lira according to the exchange rate applied in Banque du Liban’s transactions with banks, representing an average value of (currently 1,500 Lebanese Lira per one US Dollar), and the client may agree with the bank or financial institution on:"
Article Three: The text of Item (3) of Article Two of Basic Decision No. 13353 dated August 17, 2021 is repealed and replaced with the following text: 3. "The trading in foreign currencies, other than 'new money', with clients is only according to the rate specified in Basic Decision No. 13221 dated April 21, 2020 (Basic Circular No. 151)."
Article Four: This decision shall take effect as of February 1, 2023. Article Five: This decision shall be published in the Official Gazette.
Beirut, on January 31, 2023 Governor of Banque du Liban Riad T. Salamé