Regulatory Alerts2024-10-31 | 13673Exceptional measures for the gradual withdrawal of deposits in foreign currencies
The Central Bank of Lebanon issued Decision No. 13673 to amend Basic Decision No. 13335, extending exceptional withdrawal allowances for foreign currency deposits through October and November 2024. The revised framework increases the annual withdrawal cap to $6,000 and $4,500 for specified account holders, allows balance top-ups within the cap until June 30, 2025, and mandates full liquidity coverage from mandatory foreign currency investments. These adjustments apply to individuals who filed bank secrecy lifting requests before September 25 and November 1, 2024, ensuring continued gradual repayment under current exceptional economic conditions.
Central Bank Circular No. 713
To the Banks
A copy of Central Bank Decision No. 13673 dated October 31, 2024, concerning the amendment of Basic Decision No. 13335 dated June 8, 2021 (Exceptional measures for the gradual withdrawal of foreign currency deposits) attached to Basic Circular No. 158.
Beirut, October 31, 2024 Acting Governor of the Central Bank of Lebanon
Dr. Wissam Mansouri
Central Bank Decision No. 13673 Amendment of Basic Decision No. 13335 dated June 8, 2021
The Governor of the Central Bank of Lebanon, Based on Articles 70 and 174 of the Monetary and Loan Law, particularly said articles, And based on the provisions of Basic Decision No. 13335 dated June 8, 2021 and its amendments concerning exceptional measures for the gradual repayment of foreign currency deposits, In light of the exceptional circumstances currently experienced by the country, And based on the decision taken by the Central Bank Council in its meeting held on October 31, 2024,
Has decided as follows:
Article One: The text of paragraph (4) of the "First" section of Article Four of Basic Decision No. 13335 dated June 8, 2021 is repealed and replaced with the following text: « -4 Exceptionally, two withdrawals shall be made during October 2024 and one withdrawal during November 2024, according to the following mechanism and conditions: a - The provisions of this paragraph apply to persons who submitted requests to lift bank secrecy in order to benefit from the provisions of this decision:
- Before September 25, 2024 regarding the two additional withdrawals during October 2024.
- Before November 1, 2024 regarding the additional withdrawal during November 2024. b - The annual withdrawal cap from all banks during the current cycle ending on June 30, 2025 shall be adjusted as follows:
- $6,000 for persons specified in paragraph (1) of the "First" section hereof.
- $4,500 for persons specified in paragraph (2) of the "First" section hereof. c - The "account holder", who does not have sufficient funds in their "linked special account" to benefit from the provisions of paragraph (4) hereof, may request an increase in the balance of this account by additional amounts within the cap that allows them to benefit from this decision until the expiration of its application period, such that any remaining amounts from the additional withdrawals are paid when available. d - The "Central Authority for Linked Special Accounts" declares the additional withdrawals in the status of the month in which the actual payment occurs. e - Liquidity is secured to fully cover the additional withdrawals from the mandatory foreign currency investments held by banks at the Central Bank of Lebanon, which the latter issues for this purpose.»
Article Two: This decision takes effect immediately upon its issuance. Article Three: This decision is published in the Official Gazette.
Beirut, October 31, 2024 Acting Governor of the Central Bank of Lebanon
Dr. Wissam Mansouri