The Central Bank eases lending for bankers

The Central Bank (BDL) has issued a circular that allows executives and employees of banks and financial institutions to borrow from affiliated banks and financial institutions abroad, only if the loans are supported by cash or bank guarantees.

The circular applies to affiliated units and joint units in Lebanon, as well as to bank senior shareholders, board members, managers and their families and related institutions in Lebanon, subject to the provisions of Article 152 of the Code of Money and Credit.

The current circular is a modification of a previous one that did not allow them to borrow from foreign affiliated banks and financial institutions. They were only allowed to borrow a maximum of two percent of the bank’s capital.

Some loans are not governed by the provisions of the current circular, including housing loans to purchase a primary residence for one time, car loans provided that the borrower should benefit from these loans only one time every five years, and credit cards.