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Author: Amira Cherni

Al-Akari Writes on Positive Figures Released by the Central Bank

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Banking expert Misbah Al-Akari wrote an article discussing the positive figures released today by the Central Bank, highlighting key payment trends over the past 10 months:

  • Payments by Checks: 85.5 billion dinars
  • Payments via Electronic Payment Tools (Apps and Cards): 93 billion dinars
  • Cash Payments: 52.8 billion dinars
  • Total Financial Value: 231.3 billion dinars
  • Payment Methods Breakdown:
    • 40% via Electronic Payment Tools
    • 37% via Checks
    • 23% via Cash

The article emphasizes the positive trend of electronic payments, which constitute the highest share. The total number of POS terminals has reached 70,000, with 4.7 million activated cards, and 110 million transactions carried out worth a total of 18.2 billion dinars. Additionally, the number of banking app users has risen to 2.9 million, with transaction values reaching 74.8 billion dinars.

These statistics highlight significant progress in digital transactions in Libya, particularly after the transition of the National Distributor from a transaction company to the Central Bank. The year 2025 is expected to be pivotal for the country’s digital transformation. The article also calls for increased participation from the Libyan community, including individuals, traders, and artisans, in this national strategic project.

Al-Akari also recommends that the Ministry of Economy require businesses to accept electronic payment tools when applying for trade licenses and urges municipal inspection authorities to penalize shops lacking such tools.

He concludes by expressing appreciation for those contributing to Libya’s shift from cash reliance to the benefits of electronic payments.

Exclusive: “Al-Griw” Comments on the Second Annual Forum of Its Group for 2024

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In the presence of the institution’s partners, several consultants, and ambassadors from the member states of the sanctions committee, the Libyan Investment Authority held its second annual forum for 2024 on Thursday morning in the Libyan capital, Tripoli, under the title (Second Annual Forum for Reviewing Strategic Initiatives).

In a statement to our source, the Advisor to the Libyan Investment Authority, Louay Al-Griw, said that the forum discussed the strategic direction and financial performance of the authority and its group. The forum aimed to maximize the value of Libya’s sovereign wealth and contribute to the development of the national economy, while strengthening cooperation between the relevant parties and stakeholders.

Al-Griw further stated that this achievement was recorded during the forum when the authority received the financial statements for its group for 2020 from Deloitte, a global leader in auditing and accounting. This strategic step reflects the authority’s commitment to transparency and enhances its position in the sovereign investment sector.

He added that this step received praise from the Chairman and CEO of the institution, Dr. Ali Mahmoud, who appreciated the efforts of the steering committee of the institution’s group, its partners, and those who worked on completing the project according to international standards (IFRS).

Al-Griw concluded his statement by mentioning that the forum also included a presentation by PricewaterhouseCoopers on its plan to prepare the financial statements for the institution for the years (2021, 2022, 2023), adhering to best practices and international standards. Additionally, Ernst & Young presented a detailed report on their executive stance regarding the review of the financial statements for 2020, aiming to enhance the regular financial data, which will strengthen the principles of financial disclosure.

German Site: An Overview of Aid Provided to Libya in November 2024 – Details Inside

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The German site Reliefweb reported today, Sunday, that Libya has experienced widespread conflict, civil unrest, and economic and political instability since 2011. While the humanitarian situation in the country has improved since the ceasefire agreement in October 2020, Libyans continue to suffer from the impacts of economic instability.

According to the United Nations High Commissioner for Refugees (UNHCR), migrant groups, including asylum seekers, refugees, other non-Libyan residents in or transiting through Libya, and internally displaced persons, remain among the most vulnerable populations.

The site highlighted that the influx of migrants has placed additional strain on the already limited local infrastructure and resources, leading to shortages of food, water, and medical services. This has exacerbated humanitarian needs for both migrants and members of the Libyan community.

The report continued by noting that migrant children, especially Sudanese children, lack access to adequate nutrition, healthcare, and proper sanitation, increasing their risk of disease and malnutrition.

Mohammed Abu Snina: Analyzing Key Financial Indicators of Banks for Q3 2024

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Economic expert Mohammed Abu Snina wrote an article in which he stated:

“Some pages on social media have circulated the information regarding the increase in the profits of commercial banks combined, during the current year until the end of the third quarter of the 2024 fiscal year. These profits reached 1.639 billion dinars, compared to 668.0 million dinars at the end of the third quarter of 2023, marking an increase of 145.4%.

The financial and objective assessment of this indicator, in order to judge the soundness of the banks’ performance, requires consideration of other related indicators. The most important of these indicators is the extent to which commercial banks have maintained sufficient provisions to cover doubtful debts, and the adequacy of these provisions. In other words, the size of the provisions gap as shown in the consolidated financial position of the commercial banks.”

The report indicates that the coverage ratio of provisions for doubtful debts to total non-performing loans stood at 58.6% at the end of the third quarter of 2024. This means that the provisions gap amounts to 41.4%. It would have been better if the banks had allocated a larger portion of their income to form more provisions to strengthen their financial position and reduce the gap. However, the banks preferred to announce large profits at the expense of forming adequate provisions to cover their non-performing debts, despite the fact that non-performing loans still exceed 20% of the total credit portfolio.

Another important indicator when evaluating the profits achieved by the banks is the source of income that led to these profits. Banks generally focus on increasing income derived from their core business, which mainly consists of the loans and facilities they provide within their primary role of financial intermediation—using deposits for financing and creating credit. In this regard, the report indicates that income-generating assets are low, accounting for less than 20% of total assets, which reflects the weakness or low utilization of funds by commercial banks.

Another notable observation is the increase in the balance of overdraft accounts with correspondent banks (abroad), which are accounts denominated in foreign currency. The report shows that the overdraft balance increased from the equivalent of 181.2 million dinars at the end of the third quarter of 2023 to the equivalent of 763.5 million dinars, an increase of 421.4% by the end of the third quarter of 2024. The report attributes this relatively large overdraft balance to the delay in settling accounts with correspondent banks, exposing them to interest payments that will reduce their expected profits by the end of the fiscal year, in addition to the risks associated with the rising exchange rate of the US dollar.

In conclusion, the profits announced at the end of the third quarter of 2024 should be viewed with caution, as they came at the expense of obligations that banks should not have ignored. Furthermore, most of these profits are a result of fees and commissions imposed by banks on their customers, rather than from financing activities related to their core operations.

Italian Website Reveals First Direct Flights Between Mitiga and Rome Airport

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The Italian website timesaerospaceo reported on Thursday that the Italian airline ITA Airways has launched a new direct flight route between Rome Fiumicino Airport and Mitiga Airport.

The website stated that the flights are scheduled to start on January 12, 2025.

The resumption of direct flights between Rome Fiumicino and Mitiga Airport was made possible through significant support from the Italian Prime Minister’s office, in cooperation with the Ministry of Foreign Affairs and International Cooperation, the Ministry of Transport, as well as civil aviation authorities from both Italy and Libya.

Andrea Benassi, the CEO of ITA Airways, mentioned: “ITA Airways worked closely with the Prime Minister’s office, the government, and the airline’s foundation to establish regular connections between the two countries.”

He continued, saying that Libya is a highly important market, and this route will strengthen trade between Libya and Italy while supporting many Italian companies operating in Libya, according to the website.

Exclusive: Audit Bureau Raises Concerns Over the National Authority for Corneal Transplantation Contracting with Al-Ayham Medical Services Company for LYD 17.9 Million

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Our source has exclusively obtained correspondence from the Deputy of the Libyan Audit Bureau, Atiyat-Allah Hussein Abdelkarim, expressing reservations regarding the National Authority for Corneal Transplantation’s contract with Al-Ayham Medical Services Company. The contract, valued at a total of 17.9 million Libyan dinars, is for the procurement of corneas and visiting doctors.

The concerns are based on the lack of submission of the minimum required documents, in addition to issues with certain procedures, such as the failure to provide preliminary insurance from companies bidding for the tender and the absence of a prepared estimated value for the contract.

Exclusive: Lawyer for the Islamic Call Society – Tripoli Court of Appeal’s Ruling Mandatory to Prevent Tampering with the Society’s Funds and Assets

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Hisham Al-Siddai, the legal advisor for the steering committee of the Islamic Call Society, stated to Al-Sada Economic News: “The Tripoli Court of Appeal’s ruling is binding on all entities within the host country and abroad. It is crucial for this ruling to be implemented without obstruction from any party, out of respect for independent judicial decisions and to ensure overdue employee salaries are paid as quickly as possible, allowing the Society to resume its outreach activities.”

He further stated: “The ruling from the Tripoli Court of Appeal is mandatory to prevent tampering with the Islamic Call Society’s funds and assets and to protect its reputation.”

He added, “Law enforcement agencies in the country must enforce court rulings to prevent the country from descending into chaos due to lack of respect for the judiciary. The issuance of this ruling has established the truth.”

He continued, “We hope that regulatory authorities in Libya will support the steering committee in enforcing the existing legislation and implementing the relevant rulings.”

Oil Price: Spanish Companies Make Significant Oil Discovery in These Cities in Libya… Here Are the Details

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The oil-focused website Oil Price reported on Thursday that the Spanish company Repsol YPF has made a “significant” oil discovery in the country, marking its sixth discovery in the Murzuq Basin.

According to the website, the discovery, which produced a flow of 4,650 barrels per day of “high-quality oil” during testing, comes just weeks after a group of international operators competed for exploration rights in the second auction under the terms of the Exploration and Production Sharing Agreement.

The website noted that the first round of discoveries, which took place in January 2005, was considered a success, with 23 out of 26 contract areas primarily awarded to Asian and European companies. This success, particularly in the NC186 area—a field spanning 4,300 square kilometers located 800 kilometers south—highlighted the potential for large-scale production in the region.

Exclusive: Audit Bureau Alerts Tax Authority to Withhold Registration of Contracts Worth 5 Million Dinars or More Without Bureau Approval

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Sada Economic newspaper’s source has exclusively obtained a notice from Attiyat Allah Hussein Abdul Karim, Deputy of the Libyan Audit Bureau, addressed to the head of the Tax Authority. The notice instructs the Tax Authority not to complete the registration and certification of any public contracts valued at 5 million Libyan dinars or more unless accompanied by proof of the Audit Bureau’s approval.

He stated that, according to the ruling of the Administrative Chamber of the Supreme Court on January 17, 2024, which deemed Law No. 2 of 2023 unconstitutional (this law had added provisions to Law No. 20 of 2013 on the establishment of the Administrative Oversight Authority), the Audit Bureau is the sole constitutional institution responsible for overseeing all revenues and expenditures through comprehensive financial oversight, including prior review of contracts and other financial transactions.

The Deputy emphasized that the Bureau’s authority includes pre- and post-transaction audits and concurrent oversight, a constitutional responsibility that excludes other entities from performing similar tasks.

He underscored the importance of respecting judicial rulings and adhering to the provisions of Law No. 19 of 2013 concerning the reorganization of the Audit Bureau and its amendments.

He further reminded the head of the Tax Authority to ensure that any contracts submitted for certification meet the requirement of indicating full tax payment as stipulated by law, with the stipulation that contracts are not to be split in a way that reduces their value below the threshold for Bureau oversight.

Exclusive: After Review and Examination, Audit Bureau Decides Not to Withhold the Wife and Children’s Grant

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Sada Economic newspaper’s source has exclusively obtained a communication from the Audit Bureau to the Director of the Wife and Children’s Grant Department at the Ministry of Social Affairs in the Government of National Unity.

The communication indicated that, following the Audit Bureau’s review and examinations, it has decided not to withhold the continuation of the grant disbursement procedures. However, several actions are required, including the exclusion of deceased cases according to the official records from the Civil Status Authority, removal of these cases from the children’s grant database at the Wife and Children’s Grant Department, and correction of bank account numbers based on the digits specified by each commercial bank.

Al-Shhibi: “Clearing Between Central Bank Branches in Tripoli and Benghazi Exceeds the Board’s Authority – Here’s Why”

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Banking expert Dr. Houssem Al-Shhibi commented on his official Facebook page regarding the decision of the Central Bank of Libya’s Board of Directors to activate a unified clearing system between its Tripoli and Benghazi branches.

He stated that this decision, made at the Board’s first meeting, is a positive indicator of the Board’s intent to repair damage caused by political divisions over the past decade. However, he noted several points:

“First: This decision has been repeatedly announced on various occasions, most notably following the formation of the Government of National Unity and a meeting between Mr. Al-Hibri and Mr. Al-Kabeer, but it has not yet been implemented.

Second: Benghazi has two systems within the Central Bank. The first is the original system housed at the branch on Agency Street, separated from the main system by Mr. Al-Kabeer in 2014 for political reasons. While this system can be reactivated, it only reflects the bank’s accounts as they were in 2014.

The second system was created after the division and operates independently of Tripoli’s system, accurately reflecting Benghazi’s Central Bank budget, including bank balances.

Third: Merging the two systems, or in accounting terms, consolidating the two banks’ budgets, faces technical issues due to differences between Benghazi’s and Tripoli’s general ledger and accounting systems.

Additionally: While it may seem like a simple banking measure, achieving clearing unification actually exceeds the Central Bank’s authority. For effective clearing, bank balances must be transferred from Benghazi’s budget to Tripoli’s, which would require shifting corresponding debt items into Tripoli’s budget. The issue is that the banks’ balances at Benghazi’s branch are offset by a public debt exceeding 90 billion dinars. This consolidation requires political willingness from both sides of the political divide to unify and legitimize this debt as a single Libyan public debt.”

He added: “Historically, I was assigned after the Geneva Agreement and the establishment of the Government of National Unity to follow up on this matter, but I found no political will to take this step. I believe this decision goes beyond the capabilities and mandate of the Central Bank’s Board of Directors. I hope the political decision-makers, especially the House of Representatives and the State Council, assume their responsibilities to allow the Board to fulfill its duties and deliver the long-awaited results to citizens.”

Exclusive: CEO of Strategic Partnership Forum for Oil and Gas Reveals National Oil Corporation’s Plan for Forum with Private Sector

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Houssem Misbah, CEO of the Strategic Partnership Forum for Oil and Gas, revealed to Sada Economic newspaper’s source that the National Oil Corporation plans to hold a forum bringing together the NOC, its affiliated national companies, and Libyan private sector companies operating in the oil and gas sector.

Misbah added that through this forum, the NOC aims to establish a new strategy to organize its partnerships with Libyan private sector companies in oil and gas, addressing the challenges facing these companies and exploring solutions. The forum will also feature discussion sessions to present and debate methods for achieving sustainable development in the oil sector and mechanisms for boosting production.

He noted that the organizers of the forum are keen to highlight the role of Libyan private sector companies and their potential to contribute to the growth and development of the oil and gas sector.