New withdrawal limit for bank accounts in latest Capital Control draft amendment

The joint parliamentary committees amended Article 6 of the Capital Control Law, related to the withdrawal limitations imposed on accounts, specifically old accounts or what is commonly known as "Lollar" accounts. Those accounts include deposits in banks made before the October 17 revolution, and thus they benefit from BDL Circular No. 158.

The joint parliamentary committees' amendment specified that the monthly withdrawal ceiling for the old accounts mentioned above is set at a minimum amount of $800 and not as a maximum as it was in the older version; this is aimed to raise the value of monthly withdrawals in the future if possible.

However, several questions arise: Will this amount be divided into $400  in "fresh" cash and 400 in Liras at the Sayrafa platform exchange rate, currently set at 38,000 LBP to the dollar? Moreover, how many accounts will you benefit from this amendment?

It is still being determined whether this amendment is limited to the accounts that benefit from Circular 158, which number 180,000. 

It is also unclear whether the amount will be paid in full with "fresh" cash dollars or divided between "fresh" cash dollars and Lebanese Liras at the black market price and not the Sayrafa platform rate exchange as is the current situation.

Those in power claim to allow the withdrawal of the $800 amount divided between $400 in "fresh" dollars cash and 400 dollars in Liras according to the black market exchange rate.

However, if we assume that the number of accounts is 180,000, the monthly amount of $400 required to be handed in fresh cash is $72 million, or $864 million annually. But if the number of accounts is 250,000, the amount is 100 million per month or $1.2 billion annually.

And if the number of beneficiary accounts reaches 500 thousand, the required monthly amount is 200 million dollars or an annual total of 2.4 billion.

From where will these fresh cash dollars be secured, and the most critical question: Will the Banque du Liban support the banks in securing them?