New Central Bank directive to banks will result in 68 % haircut for depositors

New Central Bank directive to banks will result in 68 % haircut for depositors

The Lebanese Central bank Banque du Liban issued a revision of article No. 13221 which deals with withdrawals of funds from the Lebanese banks

“the text of Article 1 of Basic Decision No. 13221 is is replaced with the following text: while preserving the concept of Basic Decision No. 13217 of 04/09/2020, and in the event that any depositor requests to make any withdrawals or funds in cash from Banks operating in Lebanon, subject to the approval of the concerned depositor , must pay the equivalent of their value in Lebanese pounds, according to the price of 15,000 Lebanese pounds for one US dollar, within the established ceiling 1,600 dollars per month.”

Article 2 stated that “this decision shall be implemented as of February 1, 2023.”