Exceptional Measures for the Gradual Withdrawal of Foreign Currency Deposits

Intermediary Circular No. 597

To Banks

We address you regarding Intermediary Decision No. 13,369 dated September 29, 2021, concerning the amendment of Foundational Decision No. 13,335 dated June 8, 2021 (Exceptional measures for the gradual withdrawal of foreign currency deposits) attached to Foundational Circular No. 158.

Beirut, September 29, 2021

Governor of the Central Bank of Lebanon Riad T. Sraij

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Intermediary Decision No. 13,369

Amendment of Foundational Decision No. 13,335 dated June 8, 2021

The Governor of the Central Bank of Lebanon, based on the Law of Monetary and Banking, particularly Articles 70 and 174 thereof, and clarifying the provisions of Foundational Decision No. 13,335 dated June 8, 2021 concerning exceptional measures for the gradual withdrawal of foreign currency deposits following interpretations submitted by banks regarding implementation details, and based on the decision of the Central Council of the Central Bank taken in its session held on September 22, 2021,

decrees as follows:

Article 1: A new paragraph (d) is added to the "first" part of Article 2 of Foundational Decision No. 13,335 dated June 8, 2021, as follows:

• (d) The "account holder" benefits from the provisions of this decision for accounts considered as a continuation of pre-existing accounts opened with the same bank before October 31, 2019, subject to the account movement and deduction imposed in accordance with this decision. (These accounts include, for example, a joint account that became individual, an individual account that became joint, an account transferred to heirs or bequeathed, and a frozen account that became active...). For the application of this paragraph (d), only the primary account holder to whom those funds were transferred benefits. In case of death, heirs or bequeathed beneficiaries benefit from this decision with a value not exceeding the limits stipulated in the "first" part of Article 4 below.

Article 2: The text of the "third" paragraph of Foundational Decision No. 13,335 dated June 8, 2021 is repealed and replaced with the following: "The 'account holder' benefits from the provisions of Foundational Decision No. 13,221 dated April 21, 2020 (Foundational Circular No. 151) for any of his accounts, individually or jointly or combined, throughout the validity period of this decision in the same bank, without prejudice to his right to benefit from Foundational Decision No. 13,221 dated April 21, 2020 (Foundational Circular No. 151) in any other bank. If one partner in a joint account benefits from this decision, the other partner may benefit from Foundational Decision No. 13,221 dated April 21, 2020 (Foundational Circular No. 151) for that joint account, provided he was not benefiting from the current decision. Employees or workers receiving salaries in US dollars may benefit from Foundational Decision No. 13,221 dated April 21, 2020 to withdraw their salaries only, without being deprived of the right to benefit from this decision."

Article 3: The text of the "eighth" paragraph of Article 3 of Foundational Decision No. 13,335 dated June 8, 2021 is repealed and replaced with the following: "The 'account holder' (or his authorized representative) is granted a period until October 31, 2021 to request the opening of a 'Special Branch Account', entitling him to benefit from this decision with retroactive effect for the period extending from July 1, 2021 until the date of opening the 'Special Branch Account', such that all amounts due for this period are paid on the date of the first installment, provided that the 'account holder' did not benefit during this period from the provisions of Foundational Decision No. 13,221 dated April 21, 2020 (Foundational Circular No. 151). In all cases, and on any date after October 31, 2021 and within the validity period of this decision, the 'account holder' (or his authorized representative) is granted the right to benefit from the month in which the 'Special Branch Account' was opened, provided that he did not benefit during this month from the provisions of Foundational Decision No. 13,221 dated April 21, 2020 (Foundational Circular No. 151)."

Article 4: This decision takes effect upon its issuance.

Article 5: This decision is published in the Official Gazette.

Beirut, September 29, 2021

Governor of the Central Bank of Lebanon Riad T. Sraij