Reserve Requirements and Facilities Granted by BDL to Banks and Financial Institutions

Intermediary Circular No. 638
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To Banks

Please find attached a copy of Intermediary Decision No. 13466 dated 27/7/2022 regarding the amendment of:

• Central Decision No. 6116 dated 7/3/1996 (Facilities that may be granted by the Central Bank of Lebanon to banks and financial institutions) attached to Intermediary Circular No. 23.
• Central Decision No. 7835 dated 2/6/2001 (Mandatory Reserves) attached to Intermediary Circular No. 84.

Beirut, on July 27, 2022

Governor of the Central Bank of Lebanon
Riad T. Safieh

Intermediary Decision No. 13466
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Amending Central Decision No. 6116 dated 7/3/1996 and Central Decision No. 7835 dated 2/6/2001

The Governor of the Central Bank of Lebanon, pursuant to the Monetary and Loan Law, particularly Articles 174, 70, 76, and 79 thereof, based on Central Decision No. 6116 dated 7/3/1996 and its amendments concerning the facilities that may be granted by BDL to banks and financial institutions, based on Central Decision No. 7835 dated 2/6/2001 and its amendment concerning mandatory reserves, based on the decision of the Central Council of BDL taken in its meeting held on 27/7/2022,

hereby decides as follows:

Article 1: The following text is added to Central Decision No. 6116 dated 7/3/1996, "Article 12 bis":
« Article 12 bis: Last paragraph,
Banks are exempted from obtaining BDL's approval for the early repayment of the following loans:

• Housing loans granted based on protocols signed with each of the General Housing Establishment, Armed Forces Housing Facility, Ministry of Displaced, Judges' Mutual Aid Fund, and the General Directorate of Internal Security or the General Directorate of State Security or the General Directorate of Customs, Police Force, Fire Brigade, and Beirut Municipality Guard.
• Loans granted for higher education studies.
• Environmental loans each exceeding thirty million Lebanese pounds.
  Banks, upon early repayment of the aforementioned loans in this Article, shall immediately notify BDL's Financing Unit and provide them with new repayment schedules when requested.».

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Article 2: The following text is added to Central Decision No. 7835 dated 2/6/2001, "Article 21 bis":
« Article 21 bis: Last paragraph,
Banks are exempted from obtaining BDL's approval for the early repayment of the following loans:

• Housing loans granted based on protocols signed with each of the General Housing Establishment, Armed Forces Housing Facility, Ministry of Displaced, Judges' Mutual Aid Fund, and the General Directorate of Internal Security or the General Directorate of State Security or the General Directorate of Customs, Police Force, Fire Brigade, and Beirut Municipality Guard.
• Loans granted for higher education studies.
• Environmental loans each exceeding thirty million Lebanese pounds.
  Banks, upon early repayment of the aforementioned loans in this Article, shall immediately notify BDL's Financing Unit.».

Article 3: The provisions of Articles One and Two above shall apply to early repayment requests submitted to BDL prior to the date of issuance of this Decision for which approval decisions have not yet been issued.

Article 4: This Decision shall take effect upon its issuance.

Article 5: This Decision shall be published in the Official Gazette.

Beirut, on July 27, 2022

Governor of the Central Bank of Lebanon
Riad T. Safieh