Regulatory Alerts2022-11-01 | 13495Certificates of Deposit Issued by Banque du Liban and Accounts Held in Foreign Currencies at BDL
Banque du Liban, through Governor Riad Souhane, issued Intermediary Decision No. 13495 to amend Basic Decisions 5258 and 7534, reducing interest rates on US Dollar deposit accounts and certificates of deposit held by Lebanese banks at BDL by 50 percent. The amended provisions maintain an exceptional payment structure where half of the interest is disbursed in US Dollars and the remainder in Lebanese Lira. This decision takes effect immediately upon issuance and remains valid for a six-month period, pending publication in the Official Gazette.
Intermediary Circular No. 648 To Banks and Financial Institutions
We enclose herewith a copy of Intermediary Decision No. 13495 dated 1/11/2022 concerning the amendment of:
- The Basic Decision No. 5258 dated 17/9/1993 (Opening foreign currency deposit accounts at Banque du Liban) attached to Basic Circular No. 14.
- The Basic Decision No. 7534 dated 2/3/2000 (Issuance of bank certificates of deposit by Banque du Liban) attached to Basic Circular No. 67.
Beirut, on 1 November 2022 Governor of Banque du Liban Riad T. Souhane
Intermediary Decision No. 13495 Amendment of Basic Decision No. 5258 dated 17/9/1993 and Basic Decision No. 7534 dated 2/3/2000
The Governor of Banque du Liban, Based on the Monetary and Banking Law, particularly Articles 70, 76, and 174 thereof; Based on Basic Decision No. 5258 dated 17/9/1993 and its amendments concerning the opening of foreign currency deposit accounts at Banque du Liban; Based on Basic Decision No. 7534 dated 2/3/2000 and its amendments concerning the issuance of bank certificates of deposit by Banque du Liban; Based on the decision taken by the Central Council of Banque du Liban in its meeting held on 28/10/2022;
Decrees as follows:
Article One: The text of Article 4 bis of Basic Decision No. 5258 dated 17/9/1993 is repealed and replaced with the following text: « Article 4 bis: Interest on US Dollar deposits held at Banque du Liban by banks operating in Lebanon is reduced by 50 percent. Banque du Liban continues, exceptionally, to pay half of it in US Dollars and the remainder in Lebanese Lira. »
Article Two: The text of Article 6 bis of Basic Decision No. 7534 dated 2/3/2000 is repealed and replaced with the following text: « Article 6 bis: Interest on US Dollar certificates of deposit issued by Banque du Liban and held by banks operating in Lebanon is reduced by 50 percent. Banque du Liban continues, exceptionally, to pay half of it in US Dollars and the remainder in Lebanese Lira. »
Article Three: This Decision shall take effect from its date of issuance and shall remain valid for a period of six months. Article Four: This Decision shall be published in the Official Gazette.
Beirut, on 1 November 2022 Governor of Banque du Liban Riad T. Souhane