The Lebanese Central Bank issued on June 8, 2021 intermediate decision 13335 under basic circular 158 directed to banks concerning the gradual payment of foreign currency deposits. In details, the basic circular states that banks must allow customers (“account holders”) to withdraw on a monthly basis from their foreign currency accounts that existed before October 30, 2019, $400 in bank notes or via transfer to a fresh account, in addition to the counter value of $400 in LBP at the exchange rate set by the Sayrafa platform, half of which will be via bank notes with the remaining balance to be withdrawn through electronic cards. The circular specifies the eligible balance based on the remaining balance as of March 31, 2021 or the balance as at end of October 2019 (whichever is lower), on the condition that funds are available in the account on withdrawal date. Said balance, however, would be netted of any amounts that were converted from LBP into USD after this date, any amounts used as cash collateral against facilities and any foreign currency loan payments at the concerned bank that were or will be settled in Lebanese Pounds as long as the depositor is benefiting from the provisions of the circular. In addition, the circular stipulated that depositors who have transferred money outside Lebanon (as identified by basic circular number 154) will not be able to benefit from the provisions of this circular unless they repatriate the required amounts to Lebanon. Furthermore, account holders would not be able to benefit from basic circular number 151 on any accounts held on an individual or joint level. Accordingly, banks must determine customers who are eligible to benefit from this circular and notify them of this issue. In this regard, banks must open a Special Sub Account for willing and eligible customers (account holders), and transfer up to $50,000 (upon availability) from the customer’s account to this account. In this regard, the circular noted that withdrawals are of a cumulative nature, whereby monthly payments accumulate in the account holder’s name even if he skips a monthly withdrawal. The circular pointed out that once the Special Sub Account is opened, no additional transfers will be allowed into it, adding that said account will be non-interest bearing and will not be subject to any fees. The circular also requested banks to settle the foreign currency monthly payments to depositors solely from banks’ liquidity with foreign banks (including the 3% threshold imposed by basic circular number 154) and from freed foreign currency required reserve placements with BDL, which according to the newly promulgated circular number 586 (intermediate decision number 13336) will be reduced from 15% on foreign currency deposits to 14%. Always according to the circular, account holders must waive the bank secrecy on their Special Sub Accounts, with banks required to provide BDL with the monthly balance and movements on these accounts. The circular becomes effective as of June 30, 2021 and will remain applicable for one year thereof subject to modification or renewal.