Largest Lender in Libya: Lending in Libya and Loans

One of the more challenging aspect of banking in Libya is the lack of adequate lending to the private sector. Moreover, with the Islamic banking reform (all banks in Libya must become Islamic by 2015), many banks are hesitant to lend money on the backdrop of uncertain future.

According to Ahmed Rajab, head of the largest lender in Libya, “the problem is that many issues are pending – at the level of the government ministers. For example, the urban area – the Ministry of Finance should designate places where new houses can be build. We have to get the proper license from us or investors who would like to get the loans for building or the real estate in general.”

“But they need the proper license from each municipality to enable investors to come to the banks or the banks themselves can’t get these lands, at least to enable us to build it and sell it to the people, to contribute to arranging housing for people,” adds Rajab.

New bold steps should be taken by the government to prepare or finalize some decisions or laws, especially with the municipalities in the area, at least to prepare some lands with infrastructure and change it from rural to urban area to enable investors to build and construct there.