The Lebanese Central Bank recently issued intermediary circular no. 547 concerning the facilities provided by the Central Bank to banks and financial institutions. The circular requires banks and financial institutions operating in Lebanon to extend on their own responsibility exceptional loans in local or foreign currency to existing clients who already benefit from different types of loans (including subsidized ones) and who are unable to honor their debt obligations for the months of March, April and May 2020 due to the current economic situation. The circular added that the exceptional loans can be used to pay loan installments for the concerned three months and/or to cover salaries & operating expenses at concerned companies. Said loans are interest commission free, and must be repaid over the course of 5 years. The circular also stipulates that the aforementioned loans will not be subjected to the debt ceilings placed on clients. The source of funds for these loans will be lines of credit in US Dollar extended by the Central Bank to banks & financial institutions over a period of five years and at zero interest rate for an amount equivalent to the loans provided by these banks to their clients in local and foreign currencies.