Central Bank Intermediate Circular #462 Supports Lebanese Industrial Companies

According to the Central Bank of Lebanon’s (BDL) Intermediate Circular # 462, Lebanese banks can benefit from a 100% reduction in reserve requirements against LBP denominated loans offered to finance the working capital of licensed industrial companies that export their output.

Among others, below are some of the conditions under which the exemption from reserve requirements is applicable:

  1. The industrial exports must be certifiably of Lebanese origin and cannot be imported industrial products destined to be re-exported.
  2. The industrial companies excluded from the scope of this circular are mining, petroleum, cement and cement related companies.
  3. The company must have exported more than 50% of its production in the past 1 to 3 years or must have the ability to prove it can export this share.
  4. The company must not be a beneficiary of other similar loans such as those offered by the Arab Trade Financing Program
  5. The loan duration must not exceed 3 years
  6. The loan amount must not exceed 3 billion Lebanese Pounds ($1.99 million)
  7. All the annual interest, commissions and expenses related to the loan must not exceed 3%

Leave a Reply

Your email address will not be published. Required fields are marked *