Central Bank reassures foreign investors about deposits
25 كانون الثاني 2020 16:33
Lebanon's central bank said on Saturday there would be no "haircut" on deposits at banks due to the country's financial crisis, responding to concerns voiced by a prominent Arab billionaire about risks to foreign investments there.
Emirati businessman Khalaf Ahmad al-Habtoor, founder of the Al Habtoor Group that has two hotels in Beirut, posted a video of himself on his official Twitter account asking Lebanon's central bank governor if there was any risk to dollar deposits of foreign investors and whether there could be any such haircut.
"The declared policy of the Central Bank of Lebanon is not to bankrupt any bank thus preserving the depositors. Also the law in Lebanon doesn't allow haircut," the Central Bank (BDL) said in a Twitter post addressed to Habtoor, from Governor Riad Salameh.
"BDL is providing the liquidity needed by banks in both Lebanese pound and dollars, but under one condition that the dollars lent by BDL won't be transferred abroad."
"All funds received by Lebanese banks from abroad after November 17th are free to be transferred out," it added on its official Twitter account.
Habtoor had asked Salameh for clarity for Arab investors concerned about the crisis and those thinking of transferring funds to Lebanon to try to "help the brotherly Lebanese".