Exceptional measures for the gradual withdrawal of deposits in foreign currencies

Intermediary Circular No. 717 to Banks

We enclose a copy of Intermediary Decision No. 13680 dated 2024/11/26 regarding the amendment of Basic Decision No. 13335 dated 2021/6/8 (Exceptional measures for the gradual withdrawal of foreign currency deposits) attached to Basic Circular No. 158.

Beirut, 26 November 2024
Acting Governor of the Central Bank of Lebanon Dr. Wissam Al Mansouri

Intermediary Decision No. 13680

Amendment of Basic Decision No. 13335 dated 2021/6/8

The Governor of the Central Bank of Lebanon, pursuant to the Monetary and Exchange Law, particularly Articles 70 and 174 thereof, and pursuant to the provisions of Basic Decision No. 13335 dated 2021/6/8 and its amendments regarding exceptional measures for the gradual withdrawal of foreign currency deposits, and in light of the exceptional circumstances currently experienced by the country, and based on the decision of the Central Bank Council taken in its meeting held on 2024/11/26,

hereby decides the following:

Article 1: The text of the "third" paragraph of Article 2 of Basic Decision No. 13335 dated 2021/6/8 is repealed and replaced with the following text:
"Third: The 'account holder' shall not benefit from the provisions of Basic Decision No. 13611 dated 2024/2/2 (Basic Circular No. 166) regarding any accounts he holds individually, jointly, or in association with any bank whatsoever throughout the duration of his benefit from the provisions of this Decision. In case one partner in a joint account benefits from the provisions of this Decision, his partner shall not be able to benefit from the provisions of Basic Decision No. 13611 dated 2024/2/2 (Basic Circular No. 166) regarding this joint account, but rather he may benefit from the aforementioned Basic Decision No. 13611 regarding his other accounts if he is not simultaneously benefiting from the provisions of this current Decision."

Article 2: The text of paragraph (4) of the "first" paragraph of Article 4 of Basic Decision No. 13335 dated 2021/6/8 is repealed and replaced with the following text:
"4. Exceptionally, two withdrawals shall be made during the month of November 2024 and one payment during the month of December 2024, and one payment during the month of January 2025, in addition to the monthly payments according to the following mechanism and conditions:
a. The provisions of this paragraph apply to persons who submitted requests for lifting the banking secrecy with the aim of benefiting from the provisions of this Decision:

• Before 2024/9/25 regarding the two additional payments during November 2024.
• Before 2024/11/1 regarding the additional payment during December 2024.
• Before 2024/11/26 regarding the additional payment during January 2025.
  b. The annual withdrawal ceiling from all banks during the current cycle ending on 2025/6/30 shall be adjusted to become as follows:
• $6,400 regarding persons specified in paragraph (1) of the 'first' paragraph hereof.
• $4,800 regarding persons specified in paragraph (2) of the 'first' paragraph hereof.
  c. The 'account holder', who does not have a sufficient amount in his 'derived special account' to benefit from the provisions of paragraph (4) hereof, may request an increase in the balance of this account by an additional amount within the ceiling that the customer can benefit from under this Decision until the end of its application period, such that the remaining amounts of the additional payments are paid when available.
  d. The 'Central Service for Derived Special Accounts' shall declare the additional payments in the status of the month in which the actual payment occurs. e. The liquidity for fully settling the additional payments shall be secured entirely from the mandatory foreign currency allocations held by banks at the Central Bank, which the latter issues for this purpose."

Article 3: Paragraph (3) with the following text is added to the second paragraph of the "fourth" paragraph of Article 4 of Basic Decision No. 13335 dated 2021/6/8:
"3. In case he benefits from the provisions of this Decision and from the provisions of Basic Decision No. 13611 dated 2024/2/2 (Basic Circular No. 166) from any bank whatsoever simultaneously, until his status is settled."

Article 4: This Decision shall take effect upon its issuance.

Article 5: This Decision shall be published in the Official Gazette.

Beirut, 26 November 2024
Acting Governor of the Central Bank of Lebanon Dr. Wissam Al Mansouri