FDIs under the BDL’s watchful eye

Annual disclosure surveys to be filled by banks

The Central Bank (BDL) issued this week a circular requiring resident banks and other financial institutions to disclose the elements and details of the Foreign Direct Investments they are aware of, on a yearly basis.

“The circular is applicable in case the foreign investor achieves his investment through a bank or financial institution,” said a source at the BDL. A circular issued by BDL, in 2002, permits it to track the flow of FDI and include it in the balance of payment.

The source said: “FDIs that do not go through a local bank or financial institution will be tracked through the Central Administration of Statistics, not the BDL.”

FDI details to be tracked include incoming and outgoing investments: Those conducted by non-residents in Lebanon and those conducted by residents outside of Lebanon.

The aim of the survey was to compile FDI data essential for conducting economic analysis, measuring growth, and monitoring investment impact on the economy. “Data will only be used for statistical purposes and not for increasing the BDL’s control,” according to the Central Bank.

The survey is coordinated by the International Monetary Fund and is being conducted as part of a global undertaking. “It is made within the framework of the statistical obligations of Lebanon, more particularly in the field of the balance of payments and the international investment position,” said the BDL source.

The concerned institutions shall provide BDL with copies of the survey on the 31st of July of each year, starting 2014. Exceptionally, the first requested foreclosure about investments, to be delivered before the end of this year, would cover 2010, 2011, and 2012.

Information received by the BDL is not disclosed to third parties, while survey statistical results shall be posted on the BDL’s website.