Country Writer: Dr. Nasri Antoine DIAB

unidroit@dm.net.lb

NASRI ANTOINE DIAB LAW FIRM

Tel:+ 961 1 901 316 or 961 1 901 317
VIEW SECURITIZATION FINANCE MARKET STATEMENT FOR LEBANON

 

FIRM PROFILE

Although it is involved in general practice, the firm strongly believes in the importance of specialization, and its members regularly handle matters in the following areas: Financial Law (especially: fiduciary securitization and financial leasing), Banking Law, ICC Arbitration.

The firm has a large Lebanese and foreign corporate clientele and is the correspondent, in Lebanon, of several foreign leading law firms. It participated lately in numerous high profile financial transactions: IPOs of an hypermarket group and of a bank; Listing of a company at the Beirut Stock Exchange; Public infrastructure project; Syndicated loans for construction projects; Lease financing.

SECURITIZATION LAW MARKET STATEMENT

In the absence of a specific law on securitization in Lebanon, the Lebanese market is open to foreign-based structures (SPV, Trusts, French FCC, etc.), as well as to local structures involving currently available institutions to be found in the Code of Commerce, Law No.520 of 1996 on Fiduciary Agreements, the Code of Obligations and Contracts (for assignment of debts, and for co-ownership), and in the various directives of Central Bank, such as Mutual Funds, Financial Institutions, etc.

Statute No.430, enacted in 2002 in view to serve and reduce the public debt through the privatization, considered securitization as being a means to restructure and manage the debt, and devoted several articles to this issue.

The Lebanese law, which is mainly inspired from the French civil system has recently evolved to take profit of the international progress in the regulation of some important financial tools and mechanism. Central bank of Lebanon played a major role in this respect.

Besides, the mandatory use of the International Accounting Standards by Lebanese banks and corporations gives to the local market the needed transparency.

Thus, all the major concepts involved in securitization are available and applicable: assignment of debts; bankruptcy remoteness; deconsolidation; SPV; etc.

In 2002, the first two securitization transactions were structured and launched in Lebanon, and in both Nasri Antoine Diab Law Firm was the legal advisor to the Arranger. The documentation was drafted in English, Arabic and French.

VIEW SECURITIZATION FINANCE MARKET STATEMENT FOR LEBANON

 

BIOGRAPHY OF COUNTRY WRITER

Dr. Nasri Antoine DIAB holds a Ph.D. Law (University of Paris 2), a Master of Laws (Georgetown University), a Post-Graduate in Business Administration (University of Brussels - Solvay). He is lawyer at the Beirut Bar (since 1984) and Lecturer at Saint-Joseph University Law School (undergraduate and Ph.D. programs).

He was member of the former Commission of Modernization of the Laws at the Ministry of Justice (1997-1998) and of the Legal Commission of the Association of Banks in Lebanon (1997-1999). He worked for the Ministry of Economy on the drafting of the law on privatization (1997-1998), and he is currently member of the Legal Counsel Commission at the Presidency of the Council of Ministers (since 2001), and of the Institute of Petroleum (London). He is Treasurer of the Lebanese National Committee of the International Academy of Comparative Law.

He is the author of two legal books: « Le Tribunal Internationalement Compétent », LGDJ, Paris, 1993, and « La Titrisation des Actifs » (Asset Securitization), LGDJ/Bruylant, Paris and Brussels, 2003 (with I. Boustany). He is also the author of more than 50 legal articles published in law reviews in Paris, Beirut and Brussels.

Languages: French, Arabic, English