On June 8, 2020, the Central Bank issued circular n˚561 pertaining to banking facilities in foreign currency for importers of raw materials.

Here are the main provisions of the circular:

• Commercial banks may request from the Central Bank up to 90% of the value of the invoices for the purchase of oil products and 85% of the value of the invoices for the import of wheat, medicine, medical supplies, infant milk and medical products used for the manufacture of medicine.
•  Clients may only benefit from the provisions of this circular on the condition that all imported products be exclusively used for local consumption.
•  Commercial banks shall submit their applications to the funding unit within the BDL accompanied with the required documentation.
•  Commercial banks shall ensure that all documentation submitted by the client is correct and that all invoices and credits are destined to import products that are exclusively intended for local consumption.
• Commercial Banks can submit applications pertaining to invoices of products that have entered the Lebanese territory up to 300 days before the submission of the application to the BDL.
• In exceptional circumstances, the Central Bank may process the application of a Commercial Bank that was not able to submit the requested documentation on the condition that the Bank undertakes to provide the documentation as soon as possible.
•  Foreign currency shall be deposited in a creditor frozen account held at the Central Bank and the interest rate applicable to the accounts of Commercial Banks held at the Central Bank shall apply to these funds.
•  For each import operation, the Central Bank shall transfer the requested funds to the current account of the requesting Bank held at the Central Bank.
•  The Central Bank shall transfer the requested funds from the current account of the requesting Bank to the account held by the correspondent of the requesting Bank abroad.
•  Banks shall ensure the correct application of the provisions of the Circular at their own responsibility failing which sanctions shall be applied by BDL. Banks may be compelled to deposit equivalent placements to the amount that were obtained from BDL and pay a penalty representing 50% of the transferred amount.
•  The Central Bank shall refuse the benefits of the provisions of this circular to any Client that has violated any of its provisions.