Muhammad Wahba wrote in “Al-Akhbar”: In a preemptive step for the expected adjustments to the exchange rate to 15,000 pounds, the Banque du Liban decided that the prepayment of housing, educational and environmental loans would be exclusively in the loan currency. In clearer terms, “Zamat” is for those whose loan currency was in dollars and repaid the loan before October 12, 2022. As for those who intend to repay it any longer, they must pay a higher price, which is expected to reach 15,000 pounds.
On October 12, 2012, the Banque du Liban issued circular No. 646 asking banks to “exceptionally, and contrary to any other regulatory text, prepay loans in the currency of the loan without obtaining the approval of the Banque du Liban regarding all housing loans, loans granted to pursue studies in institutions of higher education.” Environmental loans, the value of which does not exceed thirty million Lebanese pounds each. This circular has a direct result related to raising the cost of prepayment for every dollar, but it includes a signal that reflects the intentions of the Banque du Liban towards adopting a new exchange rate. This circular will be the beginning of other circulars that involve adjustments in the exchange rate of deposits in dollars, and how banks deal with the new exchange rate that is intended to be adopted at a value of 15,000 pounds.
According to the circular, starting from the date of its issuance on October 12, 2019, it is necessary for those wishing to repay the entirety of their loans in advance, to pay the amount in the loan currency. The circular would also cancel what the borrowers were doing in terms of depositing amounts in pounds at the exchange rate of 1500 pounds, with notaries, to force banks to accept the payment process. Thus, whoever previously benefited from the prepayment will be exempted from any consequences, and whoever did not benefit must pay in dollars. The circular did not specify which dollar would be approved for this, but the logic of things suggests that it will be the “bank dollar” or the dollar issued by checks, or the dollars of depositors withheld in banks and sold by checks. The popular name for this dollar is “Lollar”, and its price today is 16 cents of the “Fresh” dollar (more or less depending on market developments), and according to the exchange rate today, these 16 cents are equal to 6450 pounds in the market, knowing that the price of “Pollar” in The circulars of the Banque du Liban amount to 8000 pounds, but the withdrawal of “dollars” from the bank is limited to a ceiling of 3000 dollars per month.