Exceptional measures for the gradual withdrawal of deposits in foreign currencies

Circular No. 626 To the Banks We address you regarding Decision No. 13447 dated 21/6/2022 concerning the amendment of Decision No. 13335 dated 8/6/2021 (Exceptional Measures for the Gradual Withdrawal of Foreign Currency Deposits), attached to Circular No. 158.

Beirut, 21 June 2022 Governor of the Central Bank of Lebanon Riad T. Salam

Decision No. 13447 Amendment of Decision No. 13335 dated 8/6/2021

The Governor of the Central Bank of Lebanon, pursuant to the Monetary and Loan Law, particularly Articles 174 and 70 thereof, and pursuant to the provisions of Decision No. 13335 dated 8/6/2021 and its amendments concerning exceptional measures for the gradual repayment of foreign currency deposits, and pursuant to the decision of the Central Bank Council taken in its meeting held on 16/6/2022,

hereby decides as follows:

Article One: The following paragraph (c) is added to Paragraph 2 of Article Two of Decision No. 13335 dated 8/6/2021: (c) "The account holder benefits from the provisions of this decision regarding:

• his accounts opened before 31/10/2019 upon their maturity.
• the cash collateral (Collateral Cash) provided by him before 31/10/2019, upon its release."

Article Two: The text of paragraph (2) of Paragraph 1 of Article Four of Decision No. 13335 dated 8/6/2021 is repealed and replaced as follows: (2) "In addition to the amount equivalent to 12,000 Lebanese Lira per month based on the exchange rate of US dollars to Lebanese Lira, 50% is paid in cash (Banknotes) and 50% via bank cards and/or checks and/or transfers to settle obligations owed by the account holder (taxes, fees, loans granted in Lebanese Lira, and electricity, water, fixed telephone, and mobile bills...), according to the account holder's preference. Provided that the total amount withdrawable from all banks does not exceed 4,800 US dollars annually (equivalent to 2 months of the amount at the specified exchange rate)."

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Article Three: The following paragraph is added to Paragraph 4 of Article Four of Decision No. 13335 dated 8/6/2021: "The account holder's benefit is suspended: 1- for the remaining period of the 'Annual Cycle' (Cycle Yearly) approved to apply this decision, extending from July 1 to June 30 of each year, upon reaching the specified annual withdrawal cap mentioned above. 2- throughout the excess period, if any, upon reaching the specified annual withdrawal cap at all banks where the account holder benefits from this decision, in addition to a number of months of the 'Annual Cycle' subsequent to the bank where the excess occurred, equal to the number of months during which this excess occurred."

Article Four: The text of Paragraph 1 of Article Six of Decision No. 13335 dated 8/6/2021 is repealed and replaced as follows: "Banks may, to ensure the required liquidity under this decision, use the external liquidity available to them within the 3% ratio referred to in Decision No. 13262 dated 27/8/2020 (Circular No. 154), provided that this ratio is replenished by no later than 31/12/2023."

Article Five: This decision takes effect from July 1, 2022, such that the conditions of Decision No. 13335 dated 8/6/2021, as amended by this decision, apply for a period of one year renewable or amendable, and the option to convert them remains valid until the issuance of all instructions to the "Special Sub-Account".

Article Six: This decision is published in the Official Gazette.

Beirut, 21 June 2022 Governor of the Central Bank of Lebanon Riad T. Salam