Implementation Provisions of Basic Decision No. 7926 of 20 September 2001 on Banks’ Mandatory Placements

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Basic Circular No. 87
We enclose a copy of Basic Decision No. 7935 dated 2001/9/27 regarding the Implementation Provisions of Basic Decision No. 7926 dated 2001/9/20 (Banks’ Mandatory Placements). Beirut, 27 September 2001 Governor of Bank of Lebanon Riad T. Salamah 1 - The title of this decision was last amended pursuant to Article 1 of Interim Decision No. 8371 dated 2003/3/31 (Interim Circular No. 30). Old Number: 1953 598 Basic Decision No. 7935 Implementation Provisions of Basic Decision No. 7926 dated 2001/9/20 Regarding Banks’ Mandatory Placements The Governor of Bank of Lebanon, 2 - Pursuant to the Monetary and Banking Law, particularly Articles 76 (paragraph v) and 77, and Article 174 thereof;

• And pursuant to Basic Decision No. 7926 dated 2001/9/20 regarding Banks’ Mandatory Placements;
• And since it is necessary to issue implementation provisions for Basic Decision No. 7926 dated 2001/9/20;
• And based on the resolution of the Central Bank Council adopted in its meeting held on 2001/9/26;
  Decrees as follows:
  Article 1: The elements subject to the 11% rate imposed by Article 1 of Basic Decision No. 7926 dated 2001/9/20 are determined as shown in the attached table.
  Article 2: Banks are required to submit weekly to the Economics Department at Bank of Lebanon the table referred to in Article 1 above, within a maximum deadline not exceeding Saturday following Wednesday, which marks the end of the period on the basis of which calculation is made.
  Article 3: The weekly average of the elements referred to in Article 1 above is calculated based on the official closing exchange rate of Bank of Lebanon as it stands on Wednesday, which marks the end of the period for calculation purposes, for each of the seven major currencies specified in the table referred to in Article 1 above.
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  Article 4: The following are excluded from the calculation of the placement rate (11%) referred to in Article 1 of Basic Decision No. 7926 dated 2001/9/20:
• 1. Foreign currency current accounts of banks held at Bank of Lebanon.
• 2. Accrued but unpaid interest on banks’ time deposits.
• 3. Certificates of Deposit issued by Bank of Lebanon in foreign currencies.
     Article 5: The 11% rate referred to in paragraph (1) of Article 1 of Basic Decision No. 7926 dated 2001/9/20 is deposited in any of the seven major currencies specified in the attached table. This rate is calculated based on the official closing exchange rate of Bank of Lebanon as it stands on Wednesday, which marks the end of the period for calculation purposes regarding the elements referred to in Article 1 above.
     Article 6: Banks may request Bank of Lebanon to grant them loans equivalent to the portion of their foreign currency placements held at the bank that exceeds the 11% rate imposed by Article 1 of Basic Decision No. 7926 dated 2001/9/20, against an interest rate equal to the credit interest rate calculated on these placements plus at least two percentage points.
     Article 7: The table referred to in Article 2 above is submitted via the Electronic Statistical Transmission Report (eSTR) system, effective from the suspended status dated 13 August 2008.
     Article 8: This decision takes effect upon its issuance.
     Article 9: This decision is published in the Official Gazette.
     Beirut, 27 September 2001
     Governor of Bank of Lebanon
     Riad T. Salamah
     1 - This article was amended pursuant to Article 2 of Interim Decision No. 9029 dated 2005/5/18 (Interim Circular No. 84). 2 - This rate became 11% instead of 14% pursuant to Interim Decision No. 13712 dated 2025/3/27 (Interim Circular No. 731). 3 - This article was amended pursuant to Article 3 of Interim Decision No. 9029 dated 2005/5/18 (Interim Circular No. 84). 4 - This article was amended pursuant to Article 1 of Interim Decision No. 9966 dated 2008/8/4 (Interim Circular No. 179). 600 Bank of Lebanon

1. Economics Department
2. Foreign currency obligations subject to the 11% rate imposed by Basic Decision No. 7926, attached with Basic Circular No. 86 and Basic Decision No. 7935 attached with Basic Circular No. 87
3. Form -10RO
   Average between _______________ and __________________ Bank Number:
   Valued in thousands of US Dollars. Bank Name:
   | Code | Description |
   |------|-------------|
   | 20100 | Other non-resident issuing institutions |
   | 20180 | Less: Accrued but unpaid interest (non-resident) |
   | 20200 | Non-resident commercial banks |
   | x20200 | Less: Of which new accounts subject to Basic Circular 150 |
   | 20250 | Less: Non-resident creditor accounts against debtor accounts |
   | 20280 | Less: Accrued but unpaid interest (non-resident) |
   | 20300 | Non-resident medium and long-term credit institutions |
   | x20300 | Less: Of which new accounts subject to Basic Circular 150 |
   | 20370 | Less: Non-resident creditor accounts against debtor accounts |
   | 20380 | Less: Accrued but unpaid interest (non-resident) |
   | 20500 | Resident and non-resident financial institutions |
   | x20500 | Less: Of which new accounts subject to Basic Circular 150 |
   | 20560 | Less: Creditor accounts against debtor accounts |
   | 20580 | Less: Accrued but unpaid interest |
   | 23900 | Other resident and non-resident financial sector institutions |
   | x23900 | Less: Of which new accounts subject to Basic Circular 150 |
   | 23960 | Less: Creditor accounts against debtor accounts |
   | 23980 | Less: Accrued but unpaid interest |
   | 20800 | Customer deposits (resident and non-resident) |
   | x20800 | Less: Of which new accounts subject to Basic Circular 150 |
   | s20800 | Less: Of which special accounts subject to Basic Circular 154 |
   | y20800 | Less: Of which exchange accounts subject to Basic Circular 157 |
   | 20800g | Less: Of which subsidiary special accounts subject to Basic Circular 158 |
   | 20800r | Less: Of which subsidiary special accounts subject to Basic Circular 166 |
   | 20871 | Less: Import letter of credit insurance |
   | 20890 | Less: Creditor accounts against debtor accounts |
   | 20895 | Less: Accrued but unpaid interest |
   | 24300 | Deposits from credit contracts (resident and non-resident) |
   | x24300 | Less: Of which new accounts subject to Basic Circular 150 |
   | 24301 | Less: Of which accrued but unpaid interest |
   600 bis
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   | Code | Description |
   |------|-------------|
   | 20900 | Public sector deposits |
   | x20900 | Less: Of which new accounts subject to Basic Circular 150 |
   | 20980 | Less: Accrued but unpaid interest |
   | 21000 | Payment values for residents and non-residents |
   | x21000 | Less: Of which new accounts subject to Basic Circular 150 |
   | 21210 | Other debtors - resident and non-resident private sector |
   | x21210 | Less: Of which new accounts subject to Basic Circular 150 |
   | 21221 | Other debtors - public sector current accounts |
   | x21221 | Less: Of which new accounts subject to Basic Circular 150 |
   | 21300 | Partners - resident and non-resident |
   | x21300 | Less: Of which new accounts subject to Basic Circular 150 |
   | s21300 | Less: Of which special accounts subject to Basic Circular 154 |
   | y21300 | Less: Of which exchange accounts subject to Basic Circular 157 |
   | 21300g | Less: Of which subsidiary special accounts subject to Basic Circular 158 |
   | 21300r | Less: Of which subsidiary special accounts subject to Basic Circular 166 |
   | 21325 | Less: Accrued but unpaid interest |
   | 21330 | Less: Cash advances allocated to cover inventory shortages |
   | 21350 | Less: Deposits allocated to increase own funds |
   | 21700z | Loans under bonds and similar instruments (maturity one year or less) |
   | 21748 | Less: Accrued but unpaid interest at fair value against profit and loss account |
   | 21755 | Less: Accrued but unpaid interest classified at amortized cost |
   | 23000 | Foreign branches |
   | x23000 | Less: Of which new accounts subject to Basic Circular 150 |
   | 23050 | Less: Creditor accounts against debtor accounts |
   | 23080 | Less: Accrued but unpaid interest |
   | 23100z | Head office, parent institution, sister and subsidiary banks and financial institutions (excluding resident banks) |
   | x23100 | Less: Of which new accounts subject to Basic Circular 150 |
   | 23150 | Less: Creditor accounts against debtor accounts |
   | 23180 | Less: Accrued but unpaid interest |
   | 24600z | Bank certificates at fair value against profit and loss account (maturity one year or less / excluding sold to resident banks) |
   | 24680 | Less: Accrued but unpaid interest |
   | 24700z | Bank certificates at amortized cost (maturity one year or less / excluding sold to resident banks) |
   | 24780 | Less: Accrued but unpaid interest |
   | 99999 | Total obligations valued in US Dollars |
   Note: Review of Basic Decision No. 7926, Article 1: Bonds, Certificates of Deposit, and Bank Certificates issued by banks, and loans collected from the financial sector, with no more than one year remaining until maturity for each. Name: ------------------------------ Signature: ----------------------------- 1 - The name of this department was updated to "Economics Department" instead of "Statistics and Economic Research Directorate" pursuant to Decision No. 13779 dated 2025/11/28. 2 - This rate became 11% instead of 14% pursuant to Interim Decision No. 13712 dated 2025/3/27 (Interim Circular No. 731). 3 - The last amendment to this form was introduced pursuant to Article 1 of Interim Decision No. 13633 dated 2024/5/20 (Interim Circular No. 694), effective from the suspended status for the period extending from Thursday, 2024/6/6 to Wednesday, 2024/6/12.