Issuing of Certificates of Deposit & Banking Certificates and Bonds

Intermediary Circular No. 541

To Banks and Financial Institutions And to Supervisory Commissioners

We submit herewith a copy of Intermediary Decision No. 13187 dated 30/1/2020 concerning the amendment of:

• The Basic Decision No. 6856 dated 19/12/1997 (Debt Securities Issuable by Lebanese Banks and Financial Institutions) attached to Basic Circular No. 36.
• The Basic Decision No. 7224 dated 11/2/1999 (System for Issuing Certificates of Deposit and Banking Certificates) attached to Basic Circular No. 61.

Beirut, January 30, 2020

Governor of Banque du Liban

Riyad Toufic Salamé

......

Intermediary Decision No. 13187 Amending Basic Decision No. 6856 dated December 19, 1997 and Basic Decision No. 7224 dated February 11, 1999

The Governor of Banque du Liban, Pursuant to the Monetary and Discount Law, particularly Articles 174 and 70 thereof, And pursuant to Basic Decision No. 6856 dated December 19, 1997 and its amendments concerning Debt Securities Issuable by Lebanese Banks and Financial Institutions, And pursuant to Basic Decision No. 7224 dated February 11, 1999 and its amendments concerning the System for Issuing Certificates of Deposit and Banking Certificates, In the public interest under the current exceptional circumstances facing the country, And in order to preserve the continuity of the public service based on the principle of continuity of the public service, And pursuant to the powers vested in the Governor,

Decides as follows:

Article One: Article 6 bis is added to Basic Decision No. 6856 dated December 19, 1997 with the following text: "Article 6 bis: The principal and interest of all debt securities issued by banks and financial institutions operating in Lebanon and negotiable instruments representing support loans, deposited with custodians in Lebanon, shall be settled in open accounts held by the beneficial owners at banks operating in Lebanon. The same exceptional procedures applied by Euroclear S.A.N.V. shall apply to the conversion of all aforementioned debt securities and negotiable instruments abroad."

Article Two: Article 20 is added to the system attached to Basic Decision No. 7224 dated February 11, 1999 with the following text: "Article 20: The principal and interest of all certificates of deposit and banking certificates issued by banks operating in Lebanon and deposited with custodians in Lebanon shall be settled in open accounts held by the beneficial owners at banks operating in Lebanon. The same exceptional procedures applied by Euroclear S.A.N.V. shall apply to the conversion of all aforementioned certificates of deposit and banking certificates abroad."

Article Three: This Decision shall take effect upon its issuance for a period of six months from its date.

Article Four: This Decision shall be published in the Official Gazette. Beirut, January 30, 2020 Governor of Banque du Liban

Riyad Toufic Salamé