One of the secondary entrances of Banque du Lebanon, located in Hamra, Beirut. (Credit: P.H.B.)
The Banque du Liban (BDL) on July 1 issued Circular No. 169, aiming to “ensure fairness in the repayment of deposits denominated in foreign currency.” The directive imposes new capital controls on pre-crisis deposits — those made before Nov. 17, 2019 — that remain unlawfully frozen in Lebanese banks. The move expands on previous circulars, particularly Nos. 158 and 166, which had already capped monthly withdrawals at $800 and $400, respectively.Circular 169 notably adds restrictions on foreign transfers, with particular focus on depositors pursuing legal action against Lebanese banks abroad. It instructs financial institutions to halt transfers for individuals likely to win lawsuits without prior BDL approval.“This is a courageous step that should have been taken at the beginning of the crisis,” said Camille Abousleiman, a lawyer and...
The Banque du Liban (BDL) on July 1 issued Circular No. 169, aiming to “ensure fairness in the repayment of deposits denominated in foreign currency.” The directive imposes new capital controls on pre-crisis deposits — those made before Nov. 17, 2019 — that remain unlawfully frozen in Lebanese banks. The move expands on previous circulars, particularly Nos. 158 and 166, which had already capped monthly withdrawals at $800 and $400, respectively.Circular 169 notably adds restrictions on foreign transfers, with particular focus on depositors pursuing legal action against Lebanese banks abroad. It instructs financial institutions to halt transfers for individuals likely to win lawsuits without prior BDL approval.“This is a courageous step that should have been taken at the beginning of the crisis,” said Camille Abousleiman, a...