BEIRUT, Jan. 25 (Xinhua) -- Lebanese Central Bank Governor Riad Salameh assured Saturday that the Lebanese laws do not allow any "haircut" on deposits in local banks, LBCI local TV channel reported.
Salameh's remarks came in reply to a letter sent by Khalaf Ahmed El Habtoor, a businessman from the United Arab Emirates (UAE), asking if the money of foreign investors is safe in Lebanese banks.
"If we are planning on sending money to Lebanese banks, will there be a risk of a cut?" Habtoor asked.
Salameh insisted that cut happens only if it gets legalized by the parliament.
He also noted that local banks can transfer the money that entered to these banks after Oct. 17 of last year to foreign countries but not deposits that existed before that date.
"We are adopting these measures to prevent the bankruptcy of any bank in Lebanon and protect depositors," he said.
Lebanese banks have been adopting unofficial capital controls for some three months after the outflow of a big amount of deposits to other countries.
People cannot transfer money to foreign countries or withdraw more than 200 U.S. dollars per week in some cases.
