Central Bank of Libya

P.O. Box 1103 | Telegram Address: CBL - Tripoli - Libya

Ref: R/M 804

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

Date: 13 Ramadan 1438 AH
Corresponds to: 08 June 2017 AD ...

To the General Managers of Banks,
To the Heads of Temporary Administrative Committees of Banks, To the General Manager - Libyan Bank Abroad

Greetings...

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

And referring to Circular (R.M.N No. 2017/2), issued on 01/02/2017, regarding the regulations governing the use of foreign currency for opening irrevocable letters of credit, it was stated in Item One, Point Two: "The value of the LC opened for the requesting entity shall not exceed (20) twenty times its capital, provided it has continuous cash flow in its bank account proportional to the volume of its business, with the full value of the LC covered."

We inform you of the issuance of instructions by the Central Bank of Libya exempting pharmaceutical and medical equipment import companies from the deposit requirement when covering irrevocable LCs, provided coverage is made through certified checks and RTGS transfers, on condition that these companies hold valid pharmaceutical contracts with the Ministry of Health and the Medical Supply Authority. Accordingly, you are requested to give this matter the required attention and comply with the instructions issued by the Central Bank of Libya in this regard.

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

Abdul Hafeez Masoud Tarbil
Deputy Director of Bank Supervision and Field Affairs

Prepared / For the Concerned:
Director of Bank Supervision Department at CBL / For the Concerned:
Director of Accounts Department at CBL / For the Concerned:
Head of Coverage Committee for Banks' Accounts with Correspondents Abroad at CBL / For the Concerned:
Director of Legal Affairs Department at CBL / For the Concerned:
Eng. Dr. F (Sebha - Benghazi - Sirt) / For the Concerned:
Deputy Director of Bank Supervision and Field Affairs for Field Supervision, Legislation and Policies / For the Concerned:
Compliance Monitoring in Commercial Banks, Follow-up / For the Concerned:
Compliance and Supervision / For the Concerned:

R/Al-Shibani * Periodic Letters 2017/118

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