Following a decision by its Central Council, the Central Bank, headed by interim governor Wassim Mansouri, has asked Lebanese banks to pay their customers who benefit from the mechanisms set up by main circulars No. 158 and 166, three times the monthly amounts that the latter withdraw each month. This measure, applied "in view of the emergency conditions facing the country" should allow beneficiaries to withdraw this envelope in one go, "at the beginning of October," notes the BDL in its press release.
The statement finally mentions that the mechanisms of these two texts will be applied normally again in November. According to a source at the BDL, this is a measure aimed at "supporting" the Lebanese who have blocked deposits during this difficult period. This decision comes the day after an emergency meeting between caretaker Prime Minister Najib Mikati, caretaker Finance Minister Youssef Khalil and Mansouri.
Circulars No. 158 and 166 are part of the series of texts issued by the BDL since the beginning of the banking crisis, in order to partially offset the effects of the restrictions illegally applied to accounts present in the pre-crisis financial system. They had been extended by one year at the end of June 2023, so that their mechanisms remain applicable until the end of June 2025.
Circular No. 158, dated June 8, 2021, allows for “fresh” dollar withdrawals from foreign currency bank accounts opened before Oct. 30, 2019 (now considered “lollar accounts”). This mechanism has already been renewed three times. Depositors who had joined the circular before June 30, 2023 could withdraw $400 each month (up to $4,800 per year and a total of $50,000), compared to $300 for those who opted in after July 1, 2023 (up to $3,600 per year).
As for Circular No. 166, dated February 3, 2024, it allows eligible depositors – those who do not benefit from Circular No. 158 – to withdraw $150 “fresh” per month (up to a total limit of $4,350) from their bank accounts denominated in “lollars”, and on amounts deposited between Oct. 31, 2019 and June 30, 2023. This replaced another circular (No. 151 in force from April 2020 to December 2023) which only allows small withdrawals in Lebanese pounds at an exchange rate well below the market rate. However, this one has not been fully implemented, with some banks refusing to comply with it.
This article originally appeared in French in L'Orient-Le Jour.