Exceptional Measures for the Repayment of Foreign Currency Deposits Constituted after October 31, 2019

Intermediary Circular No. 698 to Banks

We enclose, in reference to Intermediary Decision No. 13645 dated June 27, 2024, amending the base Decision No. 13611 dated February 2, 2024, attached to Base Circular No. 166, a copy thereof.

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

Intermediary Decision No. 13645 Amending Base Decision No. 13611 dated February 2, 2024

The Governor of the Central Bank of Lebanon, Based on the Monetary and Banking Law, particularly Articles 70 and 174 thereof, On exceptional measures for the repayment of foreign currency deposits constituted after October 31, 2019, And based on Base Decision No. 13611 dated February 2, 2024, And based on the decision of the Central Council of the Central Bank of Lebanon taken in its meeting held on June 26, 2024,

Decrees as follows:

Article One: The title of Base Decision No. 13611 dated February 2, 2024 is repealed and replaced with the following title: « Exceptional Measures for the Repayment of Deposits Constituted before June 30, 2023 in Foreign Currencies ».

Article Two: The text of Article One of Base Decision No. 13611 dated February 2, 2024 is repealed and replaced with the following text: « Without prejudice to depositors' right to recover their deposits, each bank operating in Lebanon shall exceptionally take the necessary steps to ensure gradual repayment of foreign currency deposits (excluding "Cash Funds") constituted before October 31, 2019 and to which their owners do not benefit from the provisions of Base Decision No. 13335 dated June 8, 2021 (Base Circular No. 158), subject to the conditions and procedures specified below. »

Article Three: The text of Article Two of Base Decision No. 13611 dated February 2, 2024 is repealed and replaced with the following text: « First: Unless an account holder (natural person, adult or minor, resident or non-resident) (hereinafter "Account Holder") benefits from the provisions of this Decision, the total balances of all their credit accounts in foreign currencies (excluding "Cash Funds"), including related accounts they participate in or are parties to, or benefit from (such as joint or affiliated accounts) at any bank shall be considered individually and calculated as frozen on June 30, 2023.

Second: The "Account Holder" benefits from the provisions of this Decision regarding:

1. Their time deposits upon maturity.
2. Cash Collateral provided by them upon release.
3. Their accounts considered as continuous to open accounts at the same bank before June 30, 2023 (these accounts include, for example, a joint account converted to an individual one, or an individual account converted to a joint one, or an account transferred to heirs or beneficiaries, or a frozen account that became current...). Until the application of Item (3) hereof, only the primary Account Holder from whom those amounts are transferred benefits. In case of death, heirs or beneficiaries benefit from the provisions of this Decision for a value not exceeding the limits stipulated in Article Five below.

Third: No "Account Holder" benefits from the provisions of this Decision if they are among:

1. Persons listed in Article Two of Base Decision No. 13262 dated August 27, 2020 (Base Circular No. 154) who have not repaid the required ratio, provided that this does not affect the obligation placed on the concerned bank to pursue its client in repaying the required ratio of funds transferred abroad.
2. Persons whose accounts show bank check movements indicating a check trading process after October 31, 2019.
3. Persons who transferred, after October 31, 2019, Lebanese Lira deposits to foreign currencies by an amount equal to or exceeding $300,000 (excluding amounts resulting from end-of-service benefits for the public and private sectors).
4. Persons who settled, after October 31, 2019, in Lebanese Lira balances of loans granted to them in foreign currencies by an amount equal to or exceeding $300,000.
5. Persons who transferred, after October 31, 2019, their loan balances from foreign currencies to Lebanese Lira by a value equal to or exceeding $300,000.
6. Persons who benefited from purchasing an amount equal to or exceeding $75,000 on the Sayrafa electronic exchange platform. »

Article Four: The text of Article Three of Base Decision No. 13611 dated February 2, 2024 is repealed and replaced with the following text: « The "Account Holder" does not benefit from the provisions of this Decision regarding any accounts held individually, jointly, or affiliated that benefit from the provisions of Base Decision No. 13335 dated June 8, 2021 (Base Circular No. 158), at any of the banks throughout the "Cycle Yearly" (Cycle Yearly) (approved for applying this Decision), extending from July 1 to June 30 of each year, during which they benefit from the provisions of Base Decision No. 13335 mentioned above. If one partner in a joint account benefits from the provisions of this Decision, their partner cannot benefit from Base Decision No. 13335 dated June 8, 2021 (Base Circular No. 158) regarding this joint account; rather, they can benefit from Base Decision No. 13335 mentioned above regarding their other accounts if they have not benefited through the "Cycle Yearly" (Cycle Yearly) of this Decision. »

Article Five: The text "Secondly" of Article Four of Base Decision No. 13611 dated February 2, 2024 is repealed and replaced with the following text: « Secondly: An amount equivalent to $350 or less is transferred to the "Special Sub-Account" subject of this Decision, depending on the balances available in the accounts of the "Account Holder" at the concerned bank, according to US Dollars or any other foreign currency, as per the client's preference, so that they have the freedom to determine the total value of the amount they can benefit from by depositing it in the "Special Sub-Account" not exceeding the amount corresponding to one cycle (one year cycle). »

Article Six: The text of Form No. (2) attached to Base Decision No. 13611 dated February 2, 2024 is repealed and replaced with the new text attached to this Decision.

Article Seven: This Decision shall be effective from July 1, 2024, such that the conditions of Base Decision No. 13611 dated February 2, 2024 as amended by this Decision shall apply for one year, renewable or adjustable, and the funds that can be transferred to the "Special Sub-Account" shall remain valid until the issuance of all funds.

Article Eight: This Decision is published in the Official Gazette.

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

Form No. (2) Declaration Regarding Base Circular No. 166 dated February 2, 2024

I, the undersigned, declare and affirm: That I am not among the persons listed in "Thirdly" of Article Three of Base Decision No. 13611 dated February 2, 2024 (Base Circular No. 166), namely:

1. Persons listed in Article Two of Base Decision No. 13262 dated August 27, 2020 (Base Circular No. 154) who have not repaid the required ratio, provided that this does not affect the obligation placed on the concerned bank to pursue its client in repaying the required ratio of funds transferred abroad.
2. Persons whose accounts show bank check movements indicating a check trading process after October 31, 2019.
3. Persons who transferred, after October 31, 2019, Lebanese Lira deposits to foreign currencies by an amount equal to or exceeding $300,000 (excluding amounts resulting from end-of-service benefits for the public and private sectors).
4. Persons who settled, after October 31, 2019, in Lebanese Lira balances of loans granted to them in foreign currencies by an amount equal to or exceeding $300,000.
5. Persons who transferred, after October 31, 2019, their loan balances from foreign currencies to Lebanese Lira by a value equal to or exceeding $300,000.
6. Persons who benefited from purchasing an amount equal to or exceeding $75,000 on the Sayrafa electronic exchange platform.
7. Persons benefiting from Base Decision No. 13335 dated June 8, 2021 (Base Circular No. 158) at any bank during the "Cycle Yearly" (Cycle Yearly) approved for applying Base Decision No. 13611 dated February 2, 2024 (Base Circular No. 166), extending from July 1 to June 30 of each year.

And that I have not engaged in any of the operations specified above, whether in all banks. Therefore, having confirmed the accuracy of the aforementioned declaration, I undertake to repay the amounts benefited from Base Decision No. 13611 dated February 2, 2024 (Base Circular No. 166).