Financial Facilities from BDL to Banks and Financial Institutions

Mediator Circular No. 477

For Banks and Financial Institutions

We submit to you, with reference number 12715 dated 7/11/2017, concerning the amendment of Decision No. 6116 dated 7/3/1996 (The Financial Facilities that the Central Bank of Lebanon may grant to Banks and Financial Institutions) attached to Basic Circular No. 23.

A copy of the Mediator Decision

Beirut, on 7 November 2017

Governor of the Central Bank of Lebanon

Riad T. Salamé

Mediator Decision No. 12715

Amendment of Basic Decision No. 6116 dated 7/3/1996

Concerning the Financial Facilities that the Central Bank of Lebanon may grant to Banks and Financial Institutions

The Governor of the Central Bank of Lebanon,

Based on the Monetary and Loan Law, particularly Articles 70, 79, and 174 thereof,

And based on Basic Decision No. 6116 dated 7/3/1996 and its amendments concerning the Financial Facilities that the Central Bank of Lebanon may grant to Banks and Financial Institutions,

And based on the Decision of the Central Bank Council of Lebanon taken at its meeting held on 12/11/2017,

Has decided as follows:

Article One: The text of the second paragraph of the beginning of "Article Eight bis" of Basic Decision No. 6116 dated 7/3/1996 is repealed and replaced with the following text:

• "Banks may benefit from interest-free loans in US Dollars for a maximum period of seven years in exchange for contributions they make, at their full responsibility, to the capital of 'Companies' without requiring these latter to provide any guarantees in return, according to the following:"

Secondly: From "Article Eight bis" of Basic Decision No. 6116 dated 7/3/1996, the text of point (1) of the paragraph is repealed and replaced with the following text:

"1- The concerned banks shall invest the loans granted by the Central Bank of Lebanon in accordance with the provisions of this Article in securities (Treasury bills, certificates of deposit...) or accounts or operations in US Dollars presented to them by the Central Bank of Lebanon for this purpose."

Article Three: This Decision shall be implemented upon its issuance.

Article Four: This Decision shall be published in the Official Gazette.

Beirut, on 7 November 2017

Governor of the Central Bank of Lebanon

Riad T. Salamé