Intermediary Decision No. 13589 Amending Basic Decision No. 7776 (Operations Relating to Credit, Investment and Shareholding and Participation)

Central Bank Circular No. 680 to Banks and Financial Institutions

We wish you well, Decision No. 13589 dated 3/11/2023 concerning the amendment of a copy of the Intermediary Decision No.
Basic Decision No. 7776 dated 21/2/2001 (Credit, Investment, Shareholding and Participation Operations) Attached to the Basic Circular No. 81

Beirut, on 3 November 2023
Acting Governor of the Central Bank of Lebanon Dr. Wissam Mansouri

Intermediary Decision No. 13589
Amending Basic Decision No. 7776 dated 21/2/2001 (Credit, Investment, Shareholding and Participation Operations)

The Governor of the Central Bank of Lebanon,
Pursuant to the Monetary and Banking Law, particularly Articles 70, 79, and 174 thereof; And pursuant to the Financial Procedures Law, particularly Articles 860, 863, and 865 thereof; And its amendments concerning credit, investment, shareholding, and participation operations; And since it has become apparent that certain banks are garnishing the pensions of their residents domiciled with them to secure installments or payments due in foreign currencies resulting from loans granted to them; And pursuant to the letter of the Minister of Finance dated 23/8/2023; And pursuant to the decision of the Central Council of the Central Bank of Lebanon taken in its meeting held on 25/10/2023; Decrees as follows:

Article One: The text "seventh repeated" from the paragraph "second" of Article Three of Basic Decision No. 7776 dated 21/2/2001 is repealed and replaced with the following text:
« Seventh: Banks operating in Lebanon are required to:

• Comply with the provisions of Articles 863 and 865 of the Civil Procedures Law and not garnish pensions or deduct therefrom amounts exceeding the ratios specified therein.
• Comply with the provisions of Article 860 of the Civil Procedures Law and not garnish pensions due to public sector employees.
• Work on rescheduling retail loans granted in US Dollars so that monthly repayments related to these loans do not exceed the ratios specified in Articles 863 and 865 of the Civil Procedures Law and in paragraph (c) of item (1) of the "second" paragraph of this Article. »

Article Two: This Decision takes effect immediately upon its issuance.
Article Three: This Decision shall be published in the Official Gazette.
Beirut, on 3 November 2023
Acting Governor of the Central Bank of Lebanon Dr. Wissam Mansouri