Opening of Bank Accounts

Mediator Circular No. 544

To Banks

We enclose a copy of Mediator Decision No. 13195 dated 13/2/2020 concerning the amendment of the Basic Decision No. 13100 dated 3/9/2019 (Opening of Bank Accounts) attached to Basic Circular No. 147.

Beirut, February 13, 2020

Governor of the Central Bank of Lebanon

Riad T. Salam

Mediator Decision No. 13195

Amendment of Basic Decision No. 13100 dated 3/9/2019

The Governor of the Central Bank of Lebanon,

Pursuant to the Monetary and Discount Law, particularly Articles 70 and 76, and Article 174 thereof, Pursuant to Article 19 of Law No. 28/67 dated 9/5/1967 concerning the amendment and completion of legislation related to banks and the establishment of a mixed institution for the guarantee of bank deposits, Pursuant to Basic Decision No. 13100 dated 3/9/2019 and its amendments regarding the opening of bank accounts, In the public interest under the current exceptional circumstances through which the country is passing, And in order to preserve the principle of continuity of public services belonging to the Governor in order to ensure the operation of the Central Bank of Lebanon based on the public service,

Decides as follows:

Article One: The following text is added to Article Four of Basic Decision No. 13100 dated 3/9/2019 under "Third" and "Fourth" paragraphs:

"Third: Banks operating in Lebanon must comply with the maximum interest rate cap on deposits they receive or renew after the date 2/2/2020 as indicated below:
1- Regarding foreign currencies (US Dollar or other foreign currencies):

• 2% for one-month deposits.
• 3% for six-month deposits.
• 4% for one-year and above deposits.
  2- Regarding the Lebanese Lira:
• 5.5% for one-month deposits.
• 6.5% for six-month deposits.
• 7.5% for one-year and above deposits."

"Fourth: Banks operating in Lebanon must reflect the reduction in interest rates resulting from the application of the provisions of this article in the calculation of the reference interest rates for the Beirut Interbank Offered Rate (BIBOR)."

Article Two: The provisions of this Decision shall be effective for a period of six months from the date of its issuance.

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

Beirut, February 13, 2020
Governor of the Central Bank of Lebanon

Riad T. Salam