20 April, 2010 EU and UAE banks seek entry into Libyan market
Libya’s Central Bank said three European banks and three Arab banks from the Gulf region had qualified for joint-venture bank licence bids, state news agency Jana reported.
European banks Unicredito SpA, HSBC Holdings Plc and Standard Chartered Plc were picked to submit bids alongside Arab banks Qatar Islamic Bank, Mashreq Bank and National Bank of Dubai.
Libya’s Central Bank said three European banks and three Arab banks from the Gulf region had qualified for joint-venture bank licence bids, state news agency Jana reported.
European banks Unicredito SpA, HSBC Holdings Plc and Standard Chartered Plc were picked to submit bids alongside Arab banks Qatar Islamic Bank, Mashreq Bank and National Bank of Dubai.
The central bank has set June 15 as the deadline for the six to submit the required documents.
“The central bank will name the winners of the bank licences after examining the documents,” it added in a statement carried late on Sunday by the state news agency Jana, monitored in Rabat. The central bank had said in early February it would allow foreigners to open joint-venture banks with local investors for the first time in 40 years.
Libya nationalised all banks, whether owned by foreigners or locals, early in 1970 after Muammar Gaddafi come to power. But Libya, home to Africa’s largest proven oil reserves, has been slowly moving to open its banking system to foreign investors since emerging from international isolation over the past seven years.
The government is now striving to reform the highly centralised banking system, which many observers see as a major obstacle to economic growth, and to lure more private investment outside the oil and gas industry.
It sold 19 per cent stakes in two banks to two foreign banks in 2007 and 2008 and government officials said they wanted to assess what benefits the country’s banking system would gain from these sales before deciding whether to go further.
The central bank has said any foreign banks investing in the two new banks must have a good investment rating from at least one of the main rating agencies, capital of least $ 2 billion and “a good international presence.”
Khaleej Times
“The central bank will name the winners of the bank licences after examining the documents,” it added in a statement carried late on Sunday by the state news agency Jana, monitored in Rabat. The central bank had said in early February it would allow foreigners to open joint-venture banks with local investors for the first time in 40 years.
Libya nationalised all banks, whether owned by foreigners or locals, early in 1970 after Muammar Gaddafi come to power. But Libya, home to Africa’s largest proven oil reserves, has been slowly moving to open its banking system to foreign investors since emerging from international isolation over the past seven years.
The government is now striving to reform the highly centralised banking system, which many observers see as a major obstacle to economic growth, and to lure more private investment outside the oil and gas industry.
It sold 19 per cent stakes in two banks to two foreign banks in 2007 and 2008 and government officials said they wanted to assess what benefits the country’s banking system would gain from these sales before deciding whether to go further.
The central bank has said any foreign banks investing in the two new banks must have a good investment rating from at least one of the main rating agencies, capital of least $ 2 billion and “a good international presence.”
Khaleej Times
