Lebanon Businessnews News

Central Bank: No haircut
on depositors says the law
Statement made in response to Khalaf Al Habtoor
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The Central Bank (BDL) issued a statement to reassure there would be no ‘haircut’ on deposits at banks. The statement was in direct response to a video tweet by Khalaf Ahmad Al Habtoor, from the UAE.

In the video Al Habtoor asked BDL if there was any risk to dollar deposits of foreign investors and whether there could be any such haircut.

Al Habtoor is the founder of the Al Habtoor Group. The company is a conglomerate with interests in the hospitality, automotive, real estate, education and publishing sectors. It has several investments in Lebanon, including two hotels managed by Hilton.

“The declared policy of the Central Bank of Lebanon is not to push any bank into bankruptcy, and preserving depositors’ money. Also the law in Lebanon doesn’t allow haircuts,” BDL said in a Twitter post addressed to Habtoor, from its Governor Riad Salameh.

“BDL is providing the liquidity needed by banks in both lira and dollar, but under one condition that the dollars lent by BDL won't be transferred abroad,” said the statement. “All funds received by Lebanese banks from abroad after November 17 are free to be transferred out,” it said.
Date Posted: Jan 27, 2020
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