The Libyan Foreign Bank warned of what it called the impact of the measures taken in Libya regarding the management of the Central Bank on the bank’s work, and the resulting negative classification of it, as it is the financial gateway for the Libyan banking sector and is concerned with oil revenues through the accounts of the National Oil Corporation.
The bank’s letter to the Director of the Banking and Monetary Control Department stated that inquiries received from all banks with which the bank deals in dollars indicate a loss of confidence among parties in the Libyan banking sector.
The letter indicated that these contacts will result in strict decisions from the relevant authorities, including the monetary authorities in the United States of America, considering that its Treasury Department is responsible for granting official approvals to the entities authorized to carry out all banking operations in dollars.
The bank considered that taking such decisions by the concerned authorities would isolate the state institutions from the most important pillars of the international banking financial system, and this would result in legal procedures resulting from the cases filed against the state for seizures and freezing as a result of violating the principle of the independence of the Central Bank and its affiliated entities.
The bank explained that if these risks occur, it will not be able to fulfill its obligations towards partners, including carrying out all banking operations related to transfers and covering documentary credit obligations.
The bank indicated that these measures will result in legal responsibilities towards the parties entitled to payment, as a result of the bank’s inability to pay its obligations, and that any action by international monetary authorities will isolate the Libyan banking system.
The bank added that isolating the banking system would make all commercial banks in Libya unable to fulfill their obligations towards partners and expose them to legal liability towards the concerned parties.
Source: Libyan Foreign Bank “Bayan”
2024-08-28 20:44:02