Secretary General of the Association of Banks in Lebanon (ABL), Makram Sader issued the following circular to banks:
"Amidst the harsh political and economic conditions that have become more difficult and complicated by the spread of COVID-19, and to respond to the questions of some committees representing depositors (such as the Lebanese Depositors Association and others) about the procedures attributed to banks, the Association of Banks in Lebanon recommends the member banks to do the following:
First: Addressing the closing of depositors' accounts with the required flexibility in these difficult circumstances and in consultation with their owners, as well as preserving and even expanding citizens' accounts, especially those belonging to public and private sector employees, in order to facilitate the process of collecting their salaries and other monetary compensation that they may receive.
Second: Regarding fresh money, and as previously circulated by the association based on the relevant circulars of the Central Bank, banks are bound by the freedom of holders of these accounts to dispose of them in withdrawals and transfers in the same currency of deposit, including the use of credit cards and transfers to students abroad, without any deduction, except for the commissions recognized in such banking operations.
Third: As a reminder, and in implementation of the circulars of the Central Bank, banks will maintain, with regard to retail loans issued in USD, to accept payment in LBP at the exchange rate that banks use with the Central Bank. As for the other loans, they must be repaid in the currency of the loan or the adoption of the exchange rate that allows the reconfiguration of their value by purchasing the equivalent from the Central Bank. Of course, in this case, the need for the bank to return to the guarantor's account, if any, is negated. Clients with debts are obligated to respect the repayment schedule agreed upon with their bank."
"Amidst the harsh political and economic conditions that have become more difficult and complicated by the spread of COVID-19, and to respond to the questions of some committees representing depositors (such as the Lebanese Depositors Association and others) about the procedures attributed to banks, the Association of Banks in Lebanon recommends the member banks to do the following:
First: Addressing the closing of depositors' accounts with the required flexibility in these difficult circumstances and in consultation with their owners, as well as preserving and even expanding citizens' accounts, especially those belonging to public and private sector employees, in order to facilitate the process of collecting their salaries and other monetary compensation that they may receive.
Second: Regarding fresh money, and as previously circulated by the association based on the relevant circulars of the Central Bank, banks are bound by the freedom of holders of these accounts to dispose of them in withdrawals and transfers in the same currency of deposit, including the use of credit cards and transfers to students abroad, without any deduction, except for the commissions recognized in such banking operations.
Third: As a reminder, and in implementation of the circulars of the Central Bank, banks will maintain, with regard to retail loans issued in USD, to accept payment in LBP at the exchange rate that banks use with the Central Bank. As for the other loans, they must be repaid in the currency of the loan or the adoption of the exchange rate that allows the reconfiguration of their value by purchasing the equivalent from the Central Bank. Of course, in this case, the need for the bank to return to the guarantor's account, if any, is negated. Clients with debts are obligated to respect the repayment schedule agreed upon with their bank."
