The Lebanese Central Bank issued on November 24, 2022 intermediate decision 13502 under intermediate circular 649 directed to banks. The circular stated that upon calculating their solvency ratios, banks are allowed to add to their Common Tier I equity a portion of the losses resulting from the purchase of US Dollar from BDL in exchange for LBP Banknotes (as long as they were conducted before November 17) so as to reduce their FX positions. More specifically banks will be consented to add to their Common Tier I equity a maximum of 66% of the losses in the year 2022 and a maximum of 33% in the year 2023. In addition, the circular requested banks to disclose within their annual reports their adoption of the aforementioned measures and their effects of said measures on solvency ratios. As far as regulatory expected credit losses are concerned, the circular requested banks to progressively constitute them by the year 2026, noting that banks that were exceptionally granted a period of 10 years to constitute the ECLs have until end of year 2029 to do so. It is worth noting in this perspective, that as per appendix number 6 of this circular, BDL raised the ECL ratio on Lebanese Eurobonds from 45% to 75%.