Reconstruction in Libya: Banking Sector’s Role in Reconstruction

The most important role of the banking sector is in Libya’s reconstruction. Many banks are currently lending or granting facilities to the contractors that have contracts with the government for construction.

According to Ahmed Rajab, “As you know, the budget has not been released yet but the government asked the contractors to continue their work.”

“There are many receivables and contractors need money so we as a bank provide these contractors with facilities and we try to extend and increase their facilities to at least enable them to continue their construction work until the budget has been released,” adds Rajab.

Rajab agrees that some laws should be reconsidered and amended by the General Congress to enable the banking sector to contribute to the investment side of reconstruction in Libya.

“Contractors will get more money and eventually the bank will generate profit from the extension and increasing of financing for these contractors,” he concludes.