Lebanon’s central bank has raised monthly dollar withdrawal allowances by 20%, offering limited relief to depositors whose savings remain frozen seven years after the country’s banking collapse, while keeping cash withdrawal ceilings unchanged.
Under amendments issued by Banque du Liban on 3 November, monthly allowances under Circular 158 will rise from $1,000 to $1,200, comprising $800 available in cash and $400 restricted to bank-card purchases. Circular 166 beneficiaries will receive $600, up from $500, including $400 available in cash and $200 for card purchases.
The increases take effect on 1 December and apply exclusively to spending through point-of-sale terminals. The two schemes, introduced in 2021 and 2024, provide eligible depositors with gradual access to foreign-currency savings restricted since Lebanon’s 2019 financial crisis.
The central bank cited weakening economic activity and rising essential-goods prices as reasons for the adjustments, which come amid continuing delays in legislation intended to restructure the banking system and resolve outstanding depositor claims.
By March 2026, Banque du Liban and commercial banks had repaid $6.1 billion to 578,770 depositors under the schemes. The central bank financed 88.2% of March’s $240.4 million repayments, according to its latest detailed statement.
Lebanese newspaper Nidaa Al Watan estimates the higher allowances could increase monthly repayments by $60 million to approximately $300 million, although the projection has not been independently confirmed.
Crucially, the central bank stipulated that previous repayments must be considered under any eventual deposit-recovery settlement, preventing double counting against future entitlements.
The increases offer depositors greater spending power but no additional cash access. With repayments potentially reducing amounts recoverable under future legislation, the measures ease immediate financial pressures without resolving how Lebanon’s remaining frozen deposits will be repaid.
Related news:
- Lebanon Unveils Financial Gap Law, Pledges Recovery of 85% of Deposits Within Four Years
- Mastercard and Whish Money Launch Lebanon’s First Wallet-to-World Transfer
