Exceptional measures for the gradual withdrawal of deposits in foreign currencies

Circular No. 697 for Banks

We enclose, with reference to Intermediary Decision No. 13644 dated 27/6/2024 concerning the amendment of Base Decision No. 13335 dated 8/6/2021 (Exceptional measures for the gradual withdrawal of deposits in foreign currencies) attached to Base Circular No. 158, a copy thereof.

Beirut, on June 27, 2024

Acting Governor of Bank of Lebanon Dr. Wissam Mansouri

Intermediary Decision No. 13644 Amending Base Decision No. 13335 dated 8/6/2021

The Governor of Bank of Lebanon, based on the Monetary and Loan Law, particularly Articles 17 and 70 thereof, based on the provisions of Base Decision No. 13335 dated 8/6/2021 and its amendments concerning exceptional measures for the gradual repayment of foreign currency deposits, based on the decision taken by the Central Council of Bank of Lebanon in its meeting held on 26/6/2024, hereby decides as follows:

First: From Article Two of Base Decision No. 13335 dated 8/6/2021, Article One: The text of the beginning of the paragraph is repealed and replaced with the following: "First: Any natural person, account holder, adult or minor, resident or non-resident (hereinafter 'Account Holder'), benefiting from the provisions of this Decision, shall rely on the total balance of all their creditor accounts in foreign currencies, including related accounts in which they participate or are parties to or benefit from (such as joint or affiliated accounts...), established before 31/10/2019 at any bank individually, subject to the following:"

Third: From Article Two of Base Decision No. 13335 dated 8/6/2021, Article Two: The text of the paragraph is repealed and replaced with the following: "Thirdly: The 'Account Holder' shall not benefit from the provisions of Base Decision No. 13611 dated 2/2/2024 (Base Circular No. 166) regarding any of their accounts individually, jointly, or affiliated, regardless of the bank, throughout the 'Annual Cycle' (Cycle Yearly) adopted for applying this Decision, extending from July 1st to the end of June of each year, during which they benefit from the provisions of this current Decision. If one partner in a joint account benefits from the provisions of this Decision, their partner cannot benefit from the provisions of Base Decision No. 13611 dated 2/2/2024 (Base Circular No. 166) regarding this joint account; rather, they may benefit from the aforementioned Base Decision No. 13611 regarding their other accounts if they have not benefited through the 'Annual Cycle' (Cycle Yearly) from the provisions of this current Decision."

First: From Base Decision No. 13335 dated 8/6/2021, Article Three: The text of paragraph (a) is repealed and replaced with the following: "Banks have the right, to secure the required liquidity under this Decision, to utilize the external liquidity available to them within the 3% ratio referred to in Base Decision No. 13262 dated 27/8/2020 (Base Circular No. 154), subject to the reconstitution of this ratio within a maximum deadline of 31/12/2025."

Article Four: This Decision shall take effect from July 1, 2024, such that the conditions of Base Decision No. 13335 dated 8/6/2021 as amended by this current Decision shall apply for a period of one year, renewable or amendable. The "Special Sub-Account" to which all funds can be converted for the purpose of releasing them shall remain valid.

Article Five: This Decision shall be published in the Official Gazette.

Beirut, on June 27, 2024 Acting Governor of Bank of Lebanon Dr. Wissam Mansouri