General Information

Lebanon is experiencing a significant crisis. This crisis is economic, political, social and health-related all at the same time. The Covid pandemic has accelerated the disintegration of a country in turmoil, burdened the highest level of debt in the world (185% of GDP). The government is currently negotiating a loan under certain conditions with the IMF and international donors.

Since the terrible explosion at the port of Beirut, the population has been faced with disarray and public demonstrations taken up to denounce the destruction of the crisis and the inaction of the ruling classes. The country fears a new interfaith conflict at the time of now urgent economic, political and financial “restructuring”.

Lebanon is characterised by its openness to foreign trade and investment (total freedom of local and foreign capital). It is important to note that foreign participation in the capital of a local company must exceed 67,000 USD and that a Holding cannot hold more than 40% of the shares of two companies operating in the same sector. Furthermore, it is advisable to rely on a local firm when setting up a company (advice, administrative procedures, etc.).

Means of Payment & Banking Specificities

The Lebanese pound is freely convertible. The euro is the currency most often used in preference to the US dollar during commercial transactions. While foreign currency is not allowed to leave the country, the central bank allows it to circulate freely within the country.

Confirmed documentary credit and stand-by letter of credit, preferably confirmed, are the recommended means of payment. SWIFT transfers can be considered as secured by a confirmed stand-by letter of credit or with contracts covered by export insurance.

The standard payment term is a maximum of 30 days. As for delays, they are very frequent and very significant in cases of non-secured payment.

Accepting settlement in foreign currencies by cheque is now strongly discouraged with the risk of this being rejected in light of the country’s current financial situation.