Lebanon's central bank, Banque du Liban, is preparing to extend Circulars 158 and 166 for an additional year while maintaining the current withdrawal mechanism, according to sources cited by Annahar, easing concerns among depositors who rely on the measures as one of their only remaining sources of liquidity amid Lebanon’s prolonged banking crisis.

The two circulars, which are set to expire at the end of June, have become a lifeline for hundreds of thousands of Lebanese depositors since the country’s financial collapse erupted in 2019 and effectively trapped savings inside the banking system.

Speculation intensified in recent days over whether the measures would be suspended, amended or extended after the central bank issued a lengthy statement explaining the rationale behind the circulars and detailing the scale of withdrawals carried out under them, without explicitly confirming a renewal.

However, sources following the file told Annahar that Banque du Liban is likely to extend both circulars until July 2027 under nearly identical terms and conditions.

Under the expected extension, depositors benefiting from Circular 158 would continue receiving monthly cash dollar withdrawals of $1,000 for another year beginning in July 2026. The same withdrawal mechanism would remain in place under Circular 166.

The sources said the extension would not involve issuing entirely new circulars, but rather prolonging the implementation of the existing measures in light of continuing financial and monetary pressures and the absence of any comprehensive solution to Lebanon’s banking crisis.

While the monthly withdrawal amounts are expected to remain unchanged, Banque du Liban is reportedly considering raising the overall withdrawal ceilings in order to allow beneficiaries to continue receiving payments throughout the extension period.

A depositor who began benefiting from Circular 158 when it first came into effect would have withdrawn roughly $43,000 by the end of June 2026. Since the current maximum ceiling is set at $50,000, the remaining balance would only cover about seven additional months at the current withdrawal rate.

As a result, discussions are reportedly underway to raise the total benefit ceiling under Circular 158 from $50,000 to $55,000.

A similar adjustment is being considered for Circular 166, with proposals to increase the maximum ceiling from $10,000 to $16,000 to ensure withdrawals continue during the new extension period.

According to the sources, the proposed increases would apply only to the overall withdrawal caps and not to the value of the monthly payments themselves, as the central bank remains constrained by liquidity pressures and limited foreign currency reserves.

The expected amendments would therefore be limited to:

• extending the two circulars for one additional year,

• increasing the overall withdrawal ceilings,

• maintaining the same monthly withdrawal values,

• and preserving the existing terms and mechanisms.

In a recent statement, Banque du Liban said the circulars were introduced in response to the “urgent and humanitarian needs” of depositors after the banking crisis that began in October 2019 imposed severe restrictions on access to deposits, particularly those denominated in foreign currencies.

The central bank said the two circulars currently provide more than $2.5 billion annually in cash dollar withdrawals, funded through banks’ mandatory reserves held at Banque du Liban, which it said effectively constitute depositors’ own funds.

According to the central bank, the number of beneficiaries under Circulars 158 and 166 reached approximately 578,770 by the end of March 2026.

It added that 266,166 depositors — representing 46% of all beneficiaries — had fully recovered the balances held in the designated sub-accounts created under the two circulars.

The total number of applications submitted under the programs reached 610,624, while cumulative payments since their introduction totaled $6.109 billion by the end of March 2026.

Banque du Liban said it contributed $4.183 billion of those payments, representing 68.46% of the total, while commercial banks contributed $1.926 billion, or 31.54%.

The central bank also stated that all depositors benefiting from Circular 158 whose deposits amounted to $40,200 or less had fully recovered their savings by the end of April 2026.