Ministry of Finance Decision On Revaluation of Banks’ Fixed Assets and Inventory

The Ministry of Finance issued on August 1^st, 2025 decision 715/1 concerning the application  of law 330 of 2024 related to the revaluation of banks’ fixed assets and inventory in addition to modifications of the gains / losses resulting from the devaluation of the Lebanese pound.

Article 1

This law reveals the conditions related to the revaluation of the assets acquired by banks against settlement of doubtful or bad debts as per article 154 in Code of Money and Credit Law and its amendments. In addition, it sets the exchange rate to be applied when reappraising the inventory, fixed assets and dealing with the gains / losses resulting from the devaluation of the Lebanese pound in foreign currency accounts of categories four and five.

Article 2

Banks can reappraise real estate plots owned against settlement of doubtful and bad debt through sworn real estate experts, conditional to abide by Article 3 of this law. Additionally, banks can consider 2024 as the first year of revaluation even if these plots were acquired in prior years.

Article 3

1. Plots Owned against Settlement of Doubtful or Bad Debts

• Certified accounting office determines, in foreign currency, the historical value of real estate plots owned as per receipts and contracts issued in foreign currency or in LBP as per the actual exchange rate at the ownership date in case the receipts and contracts were in LBP.

• If the value stated in the reappraisal report done by the sworn real estate expert higher than the historical value determined by the certified accounting office, the difference should be recorded in an independent account within the capital account. This excess amount should not be included in the cost of the plot. The taxable profits are the difference between the actual disposal value and reappraisal value without considering the historical value in calculating the capital gains.

2. Other Inventory

The historical value, in foreign currency, of the inventory should be determined through receipts and contracts issued in foreign currency or in LBP as per the actual exchange rate at the ownership date in case the receipts and contracts were in LBP.

Article 4

Banks that reappraised its real estate assets as per laws issued prior to law 330 /2024 can reappraise it in accordance to this law without the need to reappraise its other fixed assets.

Article 5

The exchange rates that should be applied in the reappraisal of banks’ inventory and fixed assets and dealing with gains / losses resulting from the exchange rate from accounts of categories four and five in foreign currency as follows: