to small depositors
The Banque du Liban issued a circular, related to cash withdrawals below $3,000 and five million pounds, under No. 148 dated 3/4/2020, allowing the withdrawal of deposits of small depositors in Lebanese pounds according to the parallel market rate circulating daily.
This circular discriminated between consumers, contrary to Article 3 of the Consumer Protection Law, which stipulates one of the most important consumer rights, which is “the right to benefit from fair treatment without discrimination.” Therefore, this circular is considered a violation of the law, as it decided to limit the benefit to about 1.715 million accounts and to prevent about one million other consumers from benefiting from it.
This decision aims to fragment and disperse the rights of depositors and to cover the continuation of banks, in violation of the law, to hold the deposits of the rest of the depositors.
The group of bodies working to preserve the rights of depositors looks suspiciously at this decision, which is silent about banks continuing to withhold the main part of deposits, their refusal to assume their responsibility for the serious financial crisis, and their intention to burden the million consumers, who were not covered by the decision, with the burden of their fatal mistakes. The Lebanese government, and the Minister of Finance in particular, are called upon to put an end to the tyranny of banks and their godfathers, the ruler of the Central Bank, and to start implementing the internal treatment plan for the crisis (recovering smuggled and looted funds, tax and customs evasion funds, and public property funds) because escaping towards external support through CEDRE and the IMF is in addition to its difficulties. It will not be safe from organized internal looting, and therefore it will not solve the causes of the crisis, most of which are internal. The corruption of the Algerian diesel deal reminds us that state thieves are present and on the lookout.
The group also confirms its continuation of the file to sue the Association of Banks and Banks in court.
To small depositors:
Transferring deposits of five million pounds or less, according to the exchange rate of the dollar in the parallel market, means compensating small depositors in pounds for the losses of the collapse of the price of the pound by about 50%, so that they can withdraw about 9.3 million. This is a step that partially compensates for the outrageous price hike. However, attention must be paid to setting an exchange rate in banks that is lower than the real rate (2600 LL)
As for deposits in dollars (less than three thousand), the depositor can also obtain them in pounds according to the parallel market price, which is about 8.4 million pounds.
In both cases, the depositor has the right to reject this transfer and keep his deposit if he so decides . Noting that the Banque du Liban circular is valid for three months.
Lawyers Committee to defend depositors
Gathering of professionals and professionals
Legal Notepad
Consumer Association.
Beirut, April 8, 2020
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