Regulatory Alerts2024-09-25 | 13669Exceptional Measures for the Repayment of Foreign Currency Deposits Constituted after 31 October 2019
The Governor of the Central Bank of Lebanon has issued Intermediary Decision No. 13669 to amend Basic Decision No. 13611, implementing exceptional and one-time repayment measures for foreign currency deposits constituted after 30 June 2023. The amended decision applies to banks approved before 25 September 2024, establishes a maximum repayment ceiling of 2,100 million Lebanese Pounds for obligations due by 30 June 2025, and mandates that the two installments be deposited into each bank’s special account by the end of the first month of 2024. Banks with insufficient balances may request exceptional reductions from their customer ceilings to ensure timely deposit of the required amounts, with all provisions taking immediate effect upon publication.
Intermediary Circular No. 710
To Banks
Copy enclosed: Intermediary Decision No. 13669 dated 25/09/2024 regarding the amendment of Basic Decision No. 13611 dated 02/02/2024 (Exceptional Measures for the Repayment of Foreign Currency Deposits Constituted after 31 October 2019) attached to Basic Circular No. 166.
Beirut, on 25 September 2024 Governor of the Central Bank, acting on behalf of Dr. Wissam Al-Mansouri
Intermediary Decision No. 13669
Amendment of Basic Decision No. 13611 dated 02/02/2024
That the Governor of the Central Bank, pursuant to Articles 70 and 174 of the Banking Law, particularly those articles, and pursuant to Basic Decision No. 13611 dated 02/02/2024 concerning the exceptional measures for the repayment of foreign currency deposits constituted after 31 October 2019, given the prevailing exceptional circumstances and considering the current financial situation, and pursuant to Decision No. [missing] of the Central Bank Council taken in its meeting held on 25/09/2024, decides the following:
Article 1: The first paragraph of Basic Decision No. 13611 dated 02/02/2024 is amended as follows: Paragraph (3) reads as follows:
(3) Exceptional and one-time, two installments are paid according to the following mechanisms and conditions: a - The provisions of this decision apply to banks that submitted a request for the Central Bank's approval to benefit from the provisions of this decision before 25/09/2024. b - The ceiling of the Central Bank's deposits in all banks is adjusted to a maximum amount of 2,100 million Lebanese Pounds for the repayment due by 30/06/2025. c - The available amount from the two installments is deposited in the special account of each bank by the end of the first month of 2024. d - Banks whose special accounts do not have sufficient amounts to benefit from the provisions of paragraph (3) in their respective special accounts may request a reduction in the balance of this bank's account by an exceptional amount from the ceiling that customers can benefit from under this decision, provided that the exception applies and the required amount from the two installments is deposited without delay. e - The two installments are deposited in the Central Bank's special accounts for banks, within the limit of the month in which the actual payment is made.
Article 2: This decision takes effect upon its issuance.
Article 3: This decision is published in the Official Gazette.
Beirut, on 25 September 2024 Governor of the Central Bank, acting on behalf of Dr. Wissam Al-Mansouri