The Lebanese Central Bank issued on May 8, 2026 intermediate decision number 13818 under intermediate circular number 764 which amends basic decision number 13217 under basic circular 150 pertaining to exceptional exemptions on banks’ mandatory placements. More specifically, intermediate circular 764 stipulates that each bank has to maintain either in the form of cash at hand or with its foreign correspondent banks in an account free from any obligations or with its fresh funds account at BDL an amount at least equivalent to 100% of fresh customer deposits in foreign currencies prior to complying with the 3% minimum foreign liquidity threshold required by basic circular 154. Furthermore, the circular exempted the branches of foreign banks operating in Lebanon from complying with the aforementioned 100% ratio, on the condition that the parent bank undertakes to cover any liquidity shortfall pertaining to its branches in Lebanon.

 The calculation of the aforementioned ratio includes:

 -       The value of sovereign debt securities issued by G10 countries and debt securities rated BBB and above classified at fair value

-       The value of the portfolio of Lebanese Treasury securities denominated in foreign currencies (Eurobonds), classified at fair value

 In addition, the circular consented banks to sell Lebanese Treasury securities denominated in foreign currencies (Eurobonds) on the condition that the proceeds arising from the said sale are used on a priority basis as follows:

 -       To secure liquidity to meet the requirements of basic circular 158 for a period of one year

-       To finance their commercial and investment operations but not their operating expenses

 The circular requires non-compliant banks to hold in their investment portfolios Lebanese Eurobonds securities in an amount equivalent to twice the amount of the shortfall and must not sell or dispose of such securities throughout the duration of the shortfall.