Banque du Liban (BdL) issued Intermediate Circular 711/13671 dated October 10, 2024 addressed to banks that amends Basic Circular 166/13611 of February 2, 2024 about exceptional measures related to the gradual disbursement of deposits in foreign currency from accounts that clients opened after October 31, 2019. First, the circular removed one of the eligibility conditions for Basic Circular 166/13611 that stipulates that depositors who converted after October 31, 2019 Lebanese-pound deposits to US dollars in excess of $300,000, except for the conversion of end-of-service indemnities to US dollars, and kept all other conditions. Second, BdL stated that the depositors who are not eligible to benefit from the terms of the new circular consist of the following. First, the depositors who did not comply with the requirement of Basic Circular 154/13262 dated August 27, 2020 about repatriating 15% or 30% of funds that they transferred abroad since July 2017. Second, depositors whose bank accounts' activity shows that they were selling and buying checks after end-October 2019. Third, depositors who reimbursed in Lebanese pounds, after end-October 2019, the equivalent of at least $300,000 in foreign currency loans. Fourth, depositors who converted, after end-October 2019, at least $300,000 in foreign currency loans to Lebanese pounds. Fifth, depositors who bought at least $75,000 at the exchange rate of BdL's Sayrafa electronic exchange platform. Seventh, depositors who are still benefiting from the terms of Basic Circular 158/13335 dated June 8, 2021 during the yearly cycle that starts on July 1 and ends on June 31 of each year. Basic Circular 166/13611 stipulated that the amounts that are eligible for withdrawals consist of a resident or non-resident natural person's aggregate foreign currency deposit balance at all bank accounts as at June 30, 2023, with the exception of ''fresh money'' accounts. Second, it said that the eligible amounts include term deposit accounts, upon their maturity, that clients opened after October 31, 2019; and the cash collateral, upon its release, that the client pledged after end-October 2019. It indicated that, in case the client decides to benefit from the circular he/she should ask the bank to open a new "Special Sub-Account", and stressed that the account owner can benefit from the terms of this circular for an amount that does not exceed $4,350 from all banks combined. It added that the bank has to transfer to this new account up to $4,350 in any foreign currency from the account that the customer identifies. It said that eligible depositors can withdraw from their ''Special Sub-Account'' $150 in banknotes monthly and/or they can transfer the sum abroad or deposit it in a ''fresh dollar'' account, without incurring any commission or direct or indirect fees of any kind. It added that the client can withdraw a maximum of $1,800 per year. It noted that the client has to sign a declaration stating that he/she did not conduct any operation that renders him/her ineligible to benefit from the terms of the circular. It added that, in case the bank determines that the client's declaration is incorrect, it will suspend his/her eligibility and will recover the funds that the client withdrew. BdL stipulated that the circular will go into effect upon its publication.   (ICE BEIRUT)

Fonte notizia: Byblos Bank, Lebanon this Week, OCT 7 - 12, 2024