The Ministry of Finance (MoF) decision #715/1 dated 1st August 2025 (attached a scanned copy) has defined the application of the Law #330/2024 on the Exceptional revaluation of Fixed Assets, Inventory and Foreign Exchange adjustment of the LBP Devaluation effect for Banks.
This MoF decision has clarified the fiscal treatment of the revaluation of real estate properties held back by banks from non-performing loans that are classified in current assets (i.e. inventory). According to this decision, these real estate properties should be revalued by a Certified Public Accountant by applying the effective exchange rate on the historical cost in foreign currency. If the bank has revalued these real estate properties by a real estate expert at their fair market value based on the Central Bank (BDL) circulars at a value that is higher than its historical cost, the bank should record the excess in the revaluation value in a separate account #103 and should exclude this value from the cost of the property in case of disposal as the MoF only recognizes the historical cost for these properties in the calculation of the capital gain subject to 15% tax. For other properties owned by banks and recorded as fixed assets, the revaluation can be performed by a real estate expert at their fair market value.
This MoF decision also authorized banks to consider the fiscal year 2024 as the first year for the revaluation of their assets acquired before this year. Moreover, they are not obliged to revalue all their assets as at 31 December 2023 and can choose the assets they wish to revalue according to the Law #330.
As for the exchange rate to be used by banks for the Foreign Exchange adjustment of the LBP Devaluation, this MoF decision has aligned the exchange rates with those imposed by the BDL to be as follows:
– 1,507.5 LBP/USD as at 31 December 2022 and until 31 January 2023
– 15,000 LBP/USD from 1st February 2023 till 31st January 2024
– 89,500 LBP/USD from 1st February 2024 till 31st May 2025
– The exchange rate set by the BDL starting from 1st June 2025