Circular No. 637

To Banks and Supervisory Authorities

We present to you Circular No. 13465 dated July 27, 2022, concerning the amendment of each of:

• A copy of the Interim Decision on Investments and Real Estate Participations for Banks attached to Fundamental Decision No. 7462 dated November 23, 1999, subject of Fundamental Circular No. 65.
• The Fundamental Decision No. 7740 dated December 21, 2000 (Liquidation of Real Estates, Shares & Participations Owned to Recover Outstanding or Doubtful Debts and Investment of Banks in Real Estate, pursuant to Article 154 of the Monetary and Banking Law) attached to Fundamental Circular No. 78.

Beirut, July 27, 2022
Governor of the Central Bank of Lebanon
Riad T. Safieh

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Interim Decision No. 13465

Amendment of Fundamental Decision No. 7740 dated December 21, 2000

and the Regulation attached to Fundamental Decision No. 7462 dated November 23, 1999

The Governor of the Central Bank of Lebanon,
Based on the Monetary and Banking Law, particularly Articles 154 and 174 thereof, Based on the Regulation on Investments and Real Estate Participations for Banks and its amendments attached to Fundamental Decision No. 7462 dated November 23, 1999, Based on Fundamental Decision No. 7740 dated December 21, 2000 and its amendments concerning the liquidation of real estates, shares, and participations owned to recover outstanding or doubtful debts and bank investments in real estate, pursuant to Article 154 of the Monetary and Banking Law, And based on the decision of the Central Bank Council taken in its meeting held on July 27, 2022, Decrees as follows:

Article One: The following text is added to the end of the Regulation on Investments and Real Estate Participations for Banks attached to Fundamental Decision No. 7462 dated November 23, 1999:

"Thirdly: Miscellaneous Provisions:
Article Seventeen: In order to sell real estates, shares, or participations owned pursuant to the provisions of Article 153 of the Monetary and Banking Law, it is required that such sale be conducted in Fresh US Dollars (Fresh Dollar) or its equivalent in Lebanese Lira based on the daily announced exchange rate of the Lebanese Lira against the US Dollar for trading operations executed on the electronic foreign exchange platform 'Sayrafa' on the day preceding the sale date."

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Article Two: The following paragraph is added to Article Two of Fundamental Decision No. 7740 dated December 21, 2000:

"In order to temporarily sell real estates, shares, or participations owned pursuant to the provisions of Article 154 of the Monetary and Banking Law, it is required that such sale be conducted in Fresh US Dollars (Fresh Dollar) or its equivalent in Lebanese Lira based on the daily announced exchange rate of the Lebanese Lira against the US Dollar for trading operations executed on the electronic foreign exchange platform 'Sayrafa' on the day preceding the sale date."

Article Three: This Decision shall take effect upon its issuance.
Article Four: This Decision shall be published in the Official Gazette.

Beirut, July 27, 2022
Governor of the Central Bank of Lebanon
Riad T. Safieh