Central Bank of Libya

P.O. Box 1103 Telegraphic Address: Libya Bank - Tripoli - Libya

Reference: R/M 804

Periodic Letter No. R/M 118 (2017/118)

Date: 13 Ramadan 1438 AH Corresponding to: 08 June 2017 AD

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To: General Managers of Banks To: Heads of Temporary Administrative Committees of Banks To: General Manager - Libyan External Bank

Greetings...

Based on the provisions of Law No. (1) of 2005 concerning Banks and its amendments, and the supervisory and regulatory role exercised by the Central Bank of Libya on commercial banks, in accordance with the provisions of the Law.

And with reference to Circular R.M.N. No. (2017/2), issued on 01/02/2017 AD, concerning the regulations governing the use of foreign currency for the purpose of opening permanent letters of credit, it was stated in the first item, General Regulations for Opening Permanent Letters of Credit, Point 2: "The value of the letter of credit opened for the applicant entity shall not exceed (20) twenty times its capital, provided that it has continuous cash flow movements in its account at the bank, commensurate with the size of its business, with the necessity of covering the full value of the letter of credit."

We inform you of the issuance of instructions from the Central Bank of Libya exempting pharmaceutical and medical minerals import companies from the cash deposit requirement when covering permanent letters of credit, and relying instead on coverage via certified checks and RTGS transfers, provided that these companies are contracted with the Ministry of Health and the Medical Supply Authority under a valid contract. Accordingly, you are requested to give the matter the required attention and comply with the instructions issued by the Central Bank of Libya in this regard.

Peace, mercy, and blessings of God be upon you...

Abdul Hafeez Masoud Tribil Deputy Director of the Bank Supervision and Currency Department Acting for the Supervision Affairs and Compliance Follow-up Department

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CC / For Information

• Director of the Bank Supervision and Currency Department at the Central Bank of Libya
• Director of the Accounts Department at the Central Bank of Libya
• Head of the Committee for Covering Bank Accounts with Overseas Supervisors at the Central Bank of Libya
• Director of the Legal Affairs Department at the Central Bank of Libya
• Secondary CC at the Central Bank of Libya (Saiqa - Benghazi - Sirte)
• Deputy Director of the Bank Supervision and Currency Department for Field Supervision, Legislation, and Policies Affairs
• Deputy Director of the Bank Supervision and Currency Department for Field Supervision, Legislation, and Policies Affairs
• Staff of Compliance Units in Commercial Banks and Beneficiaries
• Head of Banking Follow-up and Compliance Monitoring

R. Al-Shibi / Periodic Letter 2017/118

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www.cbl.gov.ly, swift code: CBLJLYLX, Fax: +218 21 444 1488, Phone: +218 21 333 3591