SOC Libya's new website

We are pleased to announce the launch of our new website (www.soclibya.com) which went live last night (Sunday 29/04/2012) after a complete makeover. We have developed and edited existing contents and added new pages such as Case Studies, Our Team and Testimonials.

Here is a copy of “About Us” page

OC Libya is a London-based independent consulting, advisory and services company. It was founded in 2008 primarily to identify, assist & support international companies before and after entering the Libyan market and it exclusively covers most sectors of the Libyan market.

Whether you are making your fist sale of products or services, or expand your business in Libya, we offer you a reliable and strong basis to flourish in Libya. In addition we will assist you in developing a strategic market entry plan along with the best approach. We will make sure that your business objectives are successfully achieved.

For effective & successful operation in the Libyan market requires cooperation with reliable & trustworthy Libyan business partners. We are focused on enabling you to make the right choices and decisions to expand your activities or make volume sales of your products or services in the Libyan market.

Libya ex-Minister Shukri Ghanem dead in Danube River

The body of Libya's former Oil Minister Shukri Ghanem has been found in the 

Danube River, Austrian police say.

                                       

There were no signs of violence to Mr Ghanem's body, said a police spokesman. An autopsy has been ordered.

The former prime minister, 69, worked as a consultant for a Vienna-based company. He apparently left his home on Sunday normally dressed, police said.

He served as Libyan prime minister from 2003 to 2006 and then as oil minister until 2011.

Various Sources

US and Malta to develop partnership to stimulate business in Libya

Finance Minister Tonio Fenech welcomed Lorraine Hariton, US State Department Special Representative for Commercial and Business Affairs, to discuss possible areas of cooperation between Malta and the US with a view to social, political and commercial activity in Libya.

Ms Hariton is responsible for State Department outreach to the business community and commercial advocacy efforts. She works with the business community worldwide to coordinate commercial diplomacy efforts supporting US foreign policy objectives.

She discussed with Mr Fenech the relationship Malta has built with Libya in all sectors, the security situation in Libya as well as the opportunities that exist for possible investment and development. Both governments, the DOI said, hope to build upon this meeting to provide access to the ‘Malta discovery process’ to US firms wishing to do business in the region.

Mr Fenech expressed the hope that this visit would be the foundation stone for a possible long-term partnership at a political and economic level between the US and Malta which may necessitate partnerships between US and Maltese firms on larger projects in Libya.

Source: Malta Independent online 

Libya helps give Italy's Eni a Q1 profit boost

Italy's largest energy company Eni SpA said Friday that its first-quarter profits rose 42 percent on increased production in Libya and higher prices.

The Rome-based company said net profit for the first three months of 2012 was (EURO)3.62 billion ($4.78 billion), up from (EURO)2.55 billion in the same period last year, even though oil and natural gas production was down a modest 0.6 percent at 1.674 million barrels a day.

Eni shares nevertheless were trading up 0.1 percent to (EURO)16.58 on the Milan Stock Exchange.

Eni's Libyan production was cut off during the first quarter of last year due to the armed conflict in the country that endangered oil workers and blocked exports. Production is expected to reach levels achieved before the conflict of 280,000 barrels of oil equivalent a day by the second half of the year.

"Eni delivered excellent results thanks to the ongoing recovery of production in Libya and higher oil prices, despite the difficult market environment," Eni CEO Paolo Scaroni said in a statement.

Eni, however, said European refining operations were unprofitable. Eni said that was due to high raw oil prices, overcapacity in European refineries and sluggish fuel demand on higher consumer prices.

The company forecasts 2012 to be "challenging" due to the ongoing crisis and volatile market conditions.

Scaroni highlighted Eni's deal with the Russian oil giant Rosneft earlier this week to explore the Arctic, saying it "underpins our exploration opportunities for many years to come, further boosting our prospects for long-term growth".

Eni is active in Russia, where it has started production at the giant Samburgskoye field in Siberia. Production there is expected to reach 43,000 barrels of oil equivalent a day.

Eni also reported successful exploration in Mozambique, and signed a contract with China National Offshore Oil Corporation to explore an offshore basin in China.

By Colleen Barry

AP Business Writer

Coveney expects Libya to reopen to Irish beef

THE VALUABLE Libyan market for Irish and EU beef looks set to be reopened after a 16-year ban, Minister for Agriculture Simon Coveney said yesterday.

He said he was optimistic that official confirmation of this would be received imminently.

Libya has been a valuable market for Irish live cattle exports in the past. In 1995 it took 81,420 cattle valued at more than €70 million. The business came to an abrupt stop in 1996 when Libya banned beef imports because of the BSE outbreak.

Mr Coveney said the progress on getting the market reopened reflected the intensive efforts over many years at political, diplomatic and technical level. It was also a recognition by the Libyan authorities of the quality and safety of Irish and EU beef, he said. He had recently written to the Libyan minister for agriculture to emphasise that Ireland applied the highest animal health standards and the strictest veterinary public health controls along the food chain.

Mr Coveney said the next step was to agree veterinary health certificates with the Libyan authorities that would set out the conditions under which the export of Irish beef could take place. It was hoped that these would be agreed soon.

Irish Farmers Association livestock chairman Henry Burns said the live cattle market to Libya and other Middle Eastern and north African countries was “extremely important” for Ireland’s €2 billion livestock sector.

By ALISON HEALY from Irish Times 

Libyan wealth fund to appeal against asset seizure in Italy

Libya's sovereign fund said on Thursday it would appeal to recover around 1.1 billion euros of assets, including stakes in top Italian companies, that were seized in Italy last month at the request of the International Criminal Court.

Italian financial police had seized the assets saying they belonged to members of the Gaddafi family, but the Libyan Investment Authority (LIA) said that was not true.

"These assets belong to LIA, which in turn is controlled by the governemnt of Libya on behalf of the Libyan people," the chairman of the fund's management committee, Mohsen Derregia, said in a statement.

He said LIA would file an appeal with the appeals court in Rome on Friday.

The seized assets include stakes in Italy's largest bank by assets UniCredit, oil and gas giant Eni, defence group Finmeccanica, carmaker Fiat, truckmaker Fiat Industrial and soccer club Juventus .

Reuters: (Reporting By Silvia Aloisi)

Libya looks to Islamic banks to lure deposits

Foreign construction labors work at the construction site of a new tower over looking the sea at the commercial center of Tripoli, Libya Thursday, Aug. 26, 2010. (AP Photo/Abdel Magid Al Fergany)

Ahmed Saeed, a Libyan poultry farmer, says he’s waiting for his country to open Islamic banks to deposit money for the first time. “I’m sure that Islamic banks are more in tune with my culture,” he said.

“I had a religious upbringing and I hear clerics ban dealing with current banks because of usury.”

Once a law that allows the establishment of stand-alone Islamic banks gets approved later this month, Libya’s interim government may be able to attract cash from people like Saeed, Deputy Central Bank Governor Ali Mohammad Salem said.

“When the people see Islamic banks, they’ll put this money there,” Salem said in an interview in the capital Tripoli. “It’s a win-win situation. The money that’s now outside the system will be circulated in the economy and used in development.”

Islamic lenders in Libya, where some banks offer Shariah-compliant services, may attract some of the estimated 15 billion dinars ($12 billion) outside the banking industry, he said. Total commercial banking assets were about 71 billion dinars at the end of 2011. The nation, where almost all the 6.7 million people are Muslim, saw its economy shrink 61 percent last year after an uprising that toppled its ruler of 42 years Moammar Gadhafi. Oil production dropped to virtually zero from 1.6 million barrels a day.

The holder of Africa’s biggest crude reserves is now pumping more than 1.3 million barrels a day, or about the combined output of Qatar and Ecuador, data compiled by Bloomberg show. Its economy is expected to surge 76 percent this year, the most since at least 1988, the International Monetary Fund estimates.

While Libya doesn’t need financial assistance from the IMF, it needs guidance to lower unemployment and to improve the business environment, including increasing access to finance, the fund said last week.

“Islamic banks could be one of the tools of development,” Salem said. “We hope that Islamic banks will focus on real investments and not just consumer-linked products such as cars.” Transactions in Islamic finance are based on the exchange of assets rather than interest to comply with Shariah principles, as well as profit and loss-sharing agreements.

Mustafa Abdel Jalil, the chairman of the National Transitional Council in Libya, said in October the interim government plans to eradicate interest from the banking industry. Charging interest “brings about disease and creates hatred,” he said.

Interest-bearing accounts, such as savings and time deposits, fell 8 percent and 6.6 percent respectively last year compared with 2010, according to a report published on the central bank website. So-called demand deposits, which don’t pay interest, rose 9.5 percent last year.

Gumhouria-Bank, a state-owned lender, has three branches offering Islamic banking services and is unable to cope with requests from companies and civil servants, according to Jamal Ajaj, the director of the lender’s Islamic banking project. Demand for Shariah-compliant financial services helped establish “informal banks,” he said in an interview in Tripoli.

“It’s proof that Islamic banks will support the economy and bring out the money stored in the homes and the excess liquidity at corporates,” he said.

The central bank said in October that it plans to allow lenders to sell Islamic bonds to help develop banking services. Egypt and Tunisia, which saw uprisings that led to the ouster of long-serving rulers, also plan to permit the sale of debt that comply with Islamic principles. Bahrain, Dubai and Ras al-Khaimah are the only sovereigns in the Arab world to sell global dollar-denominated sukuk.

The average yield on Islamic debt in the six-nation Gulf Cooperation Council, which includes Arab sovereign sukuk, fell 45 basis points so far this year to 3.86 percent Friday, HSBC/NASDAQ Dubai GCC U.S. Dollar Sukuk Index.

The yield on Dubai’s 6.396 percent sukuk maturing in November 2014 has tumbled 148 basis points in 2012 to 4.09 percent Monday. The extra yield investors demand to hold Dubai’s bonds over Malaysia’s 3.928 percent sukuk maturing in June 2015 narrowed 69 basis points in the period to 218, data compiled by Bloomberg shows. Malaysia has the world’s biggest Islamic bond market.

Global sales of sukuk more than doubled so far this year to $12 billion from the year-earlier period, according to data compiled by Bloomberg.

While Libya’s central bank is keen to boost the nation’s economy with Islamic banking, the new government has struggled to rein in armed militias built around regional and tribal loyalties. The groups were instrumental in toppling Gadhafi and have largely refused to disarm before the central government provides more funding and services to their respective regions.

Until the political situation in Libya is restored, Noor Islamic Bank, a lender controlled by Dubai’s government, won’t consider expanding its services to the North African nation, Chief Executive Officer Hussain al-Qemzi.

“We still feel that it’s too soon for us,” he said. “It’s still unsettled.”

The central bank’s priority in the first three years is to develop domestic Islamic lenders before opening the door to international banks, Salem said. Libya will honor bank licenses issued before last year’s civil war, including one given to Qatar Islamic Bank, Central Bank Governor Saddek Omar Elkaber said in November.

Demand for Islamic financial services is likely to appeal to a wide segment of the population, many of whom withdrew their money during the revolution because of concern that their cash was safer at home than in banks, said Essam al-Zleiteeni, an employee at the Culture Ministry. He’s waiting for an Islamic bank to open before he’ll return his savings.

“I’m more convinced with Islamic banks because they don’t deal with interest,” he said.

“I’ll put my money in an Islamic bank to have a clear conscience.”

London reaffirms commitment to Libya

A visit to Tripoli will give the British government the   opportunity to reaffirm its commitment to an emerging Libyan government, a British official said. British Minister for the Middle East Alistair Burt arrived in Tripoli Tuesday. He said he would formalize a British Embassy office in the former rebel capital Benghazi and open a visa application center in Tripoli during his two-day visit to Libya.

"I am delighted to return to Libya at a key stage in its  transition as the Libyan people prepare for their first  democratic elections in over 40 years," he said in a statement. "I look forward to reaffirming the U.K.'s commitment to Libya."

The British military was part of the NATO-led intervention in Libya last year meant to protect civilians from attacks by forces loyal to leader Moammar Gadhafi. Since Gadhafi's death in October, the new interim government has set the stage for national elections but dealt with internal clashes and autonomy bids.

British lawmakers are investigating their country's alleged involvement in so-called extraordinary renditions of Libyan nationals.

Burt's visit coincides with an international oil and natural gas investment conference in Tripoli.

Source: UPI 

Libyan oil minister says output about 1.5 mln bpd

Libyan oil production has climbed to about 1.5 million barrels per day (bpd) and the North African country hopes to reach pre-conflict levels by mid-year, Oil Minister Abdulrahman Ben Yazza told a news conference on Monday.

"We have reached 85 percent (of pre-conflict levels)," Ben Yazza told the Oil & Gas Libya 2012 conference. "We hope to reach our target by the middle of this year."

Libya produced 1.6 million bpd before last year's uprising, which led to the ouster and killing of leader Muammar Gaddafi, brought flows to a virtual standstill.

Libya this week hosts its first oil and gas conference since the end of last year's war. (Reporting by Marie-Louise Gumuchian and Ali Shuaib; editing by Jason Neely)

Source: Reuters 

Good News from Libya

A storefront along Tripoli Street in Misrata. Credit: Yuri Kozyrev—NOOR for TIME

Slowly but surely, the revolution in Libya is bringing stability and making progress. Yesterday, 
he Zintan Brigade turned over control of the Tripoli Airport to the Libyan government. Two days ago, 
Libyan Airlines started regular flights to Malta and the Zintan Brigade are now making plans to transfer 
their prize catch, Saif Qaddafi, to the NTC as well.

A four day conference, Infrastructure Libya 2012, backed by the ministries of Planning
and of Communications, and Oil and Gas Libya 2012, hosted by the Oil Ministry at the Tripoli
International Fairground, begins on Monday. Companies from Canada, Egypt, France,
Germany, Italy, Malta, the Netherlands, Tunisia, Turkey, UAE, UK and USA, as well as those from
Libya, are expected to attend. Even the Russians and the Chinese are negotiating their return to
Libya. Libya just bought 50,000 tons of Russian wheat.

Even the bad news has a good side. Last Thursday, when Amnesty International reported on the
death by torture of yet another black man from Tawargha in a Misrata detention center, it was the
headline in the decidedly pro-revolutionary Libyan Herald, indicating that the revolution is willing
to look honestly at itself, warts and all. And while, as I have said before, even one such death is
one too many, the fact that AI found only one such death in the two months since their earlier
report of more than a dozen killed by torture between September and February, indicates that
things are trending in the right direction.

More importantly, the root of these abuses, the make shift prisons setup by various revolutionary
brigades to contain the counter-revolutionaries immediately after the victory, is being dealt
with. On Wednesday, the Justice Ministry announced that it had taken over control of 30 such
detention centers from the thuwar.

So while, armed clashes, continue to cause trouble, there were reports of renewed fighting in
Kufra today after a seven week lull, and the flood of illegal immigrants from sun-Saharan Africa
continue to be a problem without solution, the country is rebuilding. The Sirte Local Council has
collected 1.5 billion LD in claims for damage caused by the heavy fighting there, and even in the
heavily damaged buildings on Tripoli St. in Misrata, which saw some of the heaviest bombardment
of the war, flower and dress shops can be seen to open in the bombed out remains.

As Abigail Hauslohner reported today on the Libyan Tweepforum:

all along Tripoli Street, there is also rebirth, and there is hope. New billboards and storefronts have sprung up from the city’s ashes. Uniformed traffic cops in white gloves patrol intersections—despite the absence of a fully functioning central government. And construction workers in orange vests clear rubble and tend to new flowers in the grassy medians. Stores selling wedding dresses and school supplies have re-opened their ground floor display windows; even as the gaping holes caused by rockets and tank shells remain to be fixed just above. “There are a lot of signs of war but you can see that there is life,” Yuri says. “There is life in different ways, girls on the street, boys on motorbikes, and flower shops.”

By Clay ClaiborneFollow (@Clayclai)

Source: Dailykos

Libyan Airlines restart Malta operations today (20th April 2012)

Libyan Airlines will restart operations to and from Malta today after wet-leasing an aircraft to circumvent the ban imposed by the European Commission earlier this month.

The airline will fly out twice weekly, Monday and Thursday, after managing to strike a wet-leasing agreement with Nouvelair, Tunisia’s leading private airline.

Libyan Airlines’ representative in Malta, Kevin Farrugia, said the new aircraft, an Airbus A320, would allow the airline to continue flying between Libya and Malta.

Discussions are also in their final phase to operate flights to other European destinations including Manchester, Rome, Madrid and Athens, among others, he said.

A wet lease is a leasing arrangement where an airline provides an aircraft, complete with crew, maintenance and insurance, to another airline which pays by hours operated. The airline leasing the aircraft provides fuel and covers airport fees and any other duties and taxes.

As in this case, a wet-leased aircraft may be used to fly services into countries where the airline is banned from operating with its own aircraft.

Earlier this month the Commission banned all Libyan airlines from European airspace until November, at the earliest, because of safety concerns.

A Commission spokesman said when contacted yesterday that wet-leasing aircraft were not excluded when airlines were banned from European airspace.

The ban was agreed with Libya’s civil aviation authorities following “serious concerns… regarding the safety oversight of air carriers licensed in Libya”.

The EU’s updated air safety list included a ban on the Venezuelan airline Conviasa, due to numerous safety concerns arising from accidents and the results of ramp checks at EU airports.

Mr Farrugia said the flights from Tripoli will arrive in Malta every Monday and Thursday at 6.15 p.m., with a return flight leaving Malta an hour later.

He said Libyan Airlines was also in the process of wet-leasing another of Nouvelair’s Airbus fleet and this will also be used on the Malta route, increasing frequency to and from Malta from twice weekly to four times a week.

Mr Farrugia said Libyan Airlines will also be providing a cargo service, with the possibility of transporting cargo to and from Tripoli and Malta.

(Source: Times of Malta)

Malta's GRTU gears small business up for Libyan opportunities

The Maltes Chamber of SMEs (GRTU) is leading a business offensive into the Libyan market for operators in food handling, construction, finance and investment, and maritime services.

Pharmaceutical entrepreneur Mario Debono, who financed a humanitarian shipment of aid to Libya during the conflict in 2011, recently signed a memorandum with the Misurata chamber of commerce for assistance with Maltese businesses.

At a well-attended meeting for GRTU members, Debono said that there were new opportunities in the new "different" Libya, with business set to become "more transparent and healthy".

"If the approach is right, Maltese businessmen can achieve success in Libya... no sectors will be excluded and we will go into detail of all the interests, capacities and capabilities of our members," Debono said.

The GRTU will be leading sector specific delegations, coaching members in their approach, helping in finding partners and making contracts and the required basics such as background research, visas applications, access to finance, and setting up.

By Matthew Vella from Malta Today

Global Witness: Libya's oil sector 'murky'

LONDON, April 18 (UPI) -- "Murky" practices by Libya's state-owned National Oil Co. highlight the need to reform the country's energy policies, Global Witness said.

The advocacy group said it obtained documents from Libya that indicate the country's oil revenues were grossly mismanaged under Moammar Gadhafi's government.

Global Witness said the documents suggest low-quality crude oil was sold on false pretenses to Exxon Mobil, which cost the company about $4 million. Other companies like Norwegian fertilizer company Yara received "large discounts" on natural gas prices from the Libyan National Oil Co.

"Murky dealings within Libya's National Oil Company, and the systematic mismanagement of the country's oil wealth have effectively denied millions of dollars to the people of Libya," said Giulio Carini, a campaigner at Global Witness.

Italian energy company Eni revealed in early April that it was being investigated by the U.S. Securities and Exchange Commission for alleged illegal payments to Libyan officials.

Global Witness called on the Libyan interim government to release all of its records on oil contracts for the sake of transparency.

"The case for reform of the country's oil sector could not be stronger or more urgent," said Carini.

Lufthansa German Airlines strengthens presence in Libya with increase of services to daily flights

As of 22 April, Lufthansa German Airlines is increasing its capacity between Frankfurt and Tripoli to daily flights from flying three times per week, boosting its presence in Libya to serve the growing travel demand.

“Within two months upon resumption of our operations in Libya, we are in a position to serve more passengers with our additional capacity complemented by our products onboard and on ground. More flights mean more choices for our customers. From our gateway in Frankfurt, business and leisure passengers can rely on our extensive global route network connecting to 216 destinations in 83 countries,” said Antonio Tassone, Lufthansa’s general manager in Libya.

Lufthansa flights are operated with an Airbus A319 aircraft in a two-class cabin configuration, featuring Lufthansa’s Business and Economy class.

Flt no Days of operation TIP, dep FRA, arr Aircraft type

LH1313 Daily 12:55pm 04:05pm A320

Flt no Days of operation FRA, dep TIP, arr Aircraft type

LH1312 Daily 09:05am 11:55am A320

For further information Lufthansa Sales office +218 (0) 21 3350375

http://www.docstoc.com/docs/118949711/Lufthansa-German-Airlines-strengthens-presence-in-Libya-with-increase-of-services-to-daily-flights?

Libya on Recovery Path but Faces Long Rebuilding Effort

• Libya faces urgent, costly task of rebuilding its economy
• Improved institutions, management of resources to help unleash potential
• IMF remains committed to helping Libya through capacity building

Libyan oil production has recovered faster than expected following the overthrow of Muammar Gaddafi, but the country faces the challenges of building modern institutions, repairing infrastructure, and diversifying the economy, a senior IMF official said.

With the lifting of most United Nations sanctions, the bulk of frozen assets abroad have been released and normalization of the banking system is under way.

But, in an interview, the head of the IMF’s team on Libya, mission chief Ralph Chami, said the North African country faces many immediate and longer-term challenges that need to be addressed. He added: “Libya could realize its great potential if the right institutions and policies are put in place.”

A staff team from the IMF’s Middle-East and Central Asia Department, led by Chami, prepared a report entitled “Libya beyond the Revolution: Challenges and Opportunities”. Speaking to IMF Survey—the IMF’s online magazine—Chami discusses recent developments and looks at what it will take for the Libyan government to overcome the steep challenges ahead, rebuild the economy, and address the people’s aspirations.

IMF Survey online: How is Libya faring after the revolution? Is the economy getting back on its feet?

Chami: The conflict had a severe impact on the economy and especially on the hydrocarbon sector, which is the main source of public revenues and foreign exchange. During the uprising, oil production dropped precipitously from 1.8 million barrels a day to only 22,000 in July of 2011. Since the conflict ended, the production of oil has recuperated faster than expected.

Reconstruction efforts should boost nonhydrocarbon output in the coming years. In addition, the assets that were frozen during the revolution have been largely unfrozen as most UN sanctions were lifted. So there is no longer a shortage of foreign exchange, and normal imports have resumed.

IMF Survey online: What are the challenges facing the Libyan economy in the near term?

Chami: In the short term, the country faces complex and costly tasks. Coming out of the conflict, Libya needs to rebuild infrastructure and address the humanitarian needs of its people. There is a need to restore the functioning of the banking system and to consider medium-term implications when making decisions about public spending. Safety and security are also important because these would facilitate investment and the return of expatriate workers. Many well-educated Libyans live abroad and, as in other Arab Spring countries, the diaspora could come back to help rebuild the country.

IMF Survey online: How did the government respond to the peoples’ demands after the uprising?

Chami: Before the revolution, growth was not inclusive. Like in other Arab Spring countries, economic opportunities were not shared fairly among different segments of the population. Unemployment rates and the incidence of poverty have been surprisingly high for such a resource-rich country. Those reasons, combined with a lack of representation, contributed to the revolution. To respond to the needs and aspirations of the people, the government has started to increase subsidies and provide public-sector employment, especially, for young people.

IMF Survey online: What is your assessment of the measures that the government has introduced in responding to those demands?

Chami: Spending on wages and subsidies is truly needed to ease the social pressures in the near term. But, to ensure that these social protections can continue to be provided over time, the priority should be to design a well-targeted social safety net. Increasing wages and public sector employment have resulted in a 60 percent increase of the wage bill in 2011. The cost of subsidies has also gone up significantly.

While we understand the need to provide employment, we think it should be productive employment. We also understand the need to provide subsidies, but untargeted subsidies do not necessarily help the people they are supposed to help. In contrast to generalized subsidies that benefit everyone, well-targeted schemes provide assistance only to those most needy. So, fiscal discipline is needed in the coming years.

The government should make sure that the short term does not trump the long term. My advice is: in addressing temporary problems, policymakers should come up with measures that are not inconsistent with long-term overarching developmental needs. For example, we do not want to solve the problem of unemployment by providing employment for everybody in the public sector, because that would not be the most desirable permanent solution.

IMF Survey online: What are the medium-term challenges that Libya has to deal with?

Chami: Libya faces many structural problems including a lack of institutions, weak governance, and chronic structural unemployment. Over the medium term, Libya will need to build its institutions and respond to the demands and aspirations of its population. To achieve this, Libya needs to diversify its economy away from oil dependence. There is also a need to create an enabling business environment that will facilitate private sector–led growth and job creation. Areas where the business environment needs improvement include governance, transparency, accountability, rule of law, property rights, and access to finance. In addition, there will be a need to put in place an efficient social safety net to protect the most vulnerable groups of the population.

IMF Survey online: What are Libya’s economic prospects now?

Chami: Despite the challenges in the period ahead, the revolution could unleash Libya’s huge economic potential by promoting greater inclusiveness and transparency, and enhanced governance. Combined with sound management of resources, these positive factors can leverage the country’s inherent strengths: a dynamic and young population, an abundant wealth, a beautiful coastal line, access to key markets, and a privileged geographic position.

Libya has a great potential to diversify meaningfully by having vibrant tourism and service sectors. An undesirable path would be to continue to have an oil-dependent economy in which the government is the main employer and the private sector employs mostly expatriates.

IMF Survey online: How is the IMF helping Libya during the transition period?

Chami: Given the abundant resources Libya possesses, there will be no need for financial assistance from the IMF. What Libya needs in the coming years is technical assistance to build capacity and better manage its wealth. With a mission in late 2011, we have already provided the new government with advice on measures to improve governance at the sovereign wealth fund and, in January 2012, the IMF and World Bank started work with the authorities to strengthen public financial management. In addition, we are resuming technical assistance activities at the central bank.

When the Prime Minister met with the IMF’s Managing Director a few months ago, he explicitly asked for the Fund’s help in capacity building. To this end, the government has requested assistance in reforming the system of untargeted subsidies and an IMF Fiscal Affairs Department expert is to arrive in Tripoli in April. The view is to develop a comprehensive safety net, in an effort to make growth more inclusive.

The Fund will continue to help in the area of public financial management. This includes assessing the financial management of all Libyan funds run by the central bank and the sovereign wealth fund, with the aim of providing recommendations on how to enhance accountability and transparency. The attitude of the new government in this particular area is incredibly positive, and we commend them for that.

(Source: International Monetary Fund Survey)

Purchase of oil and gas from Libya: PL ’fully supports’ negotiations between Malta and Libya

Opposition Leader Joseph Muscat held more talks in Libya yesterday and in a telephone interview on One Radio, he expressed his party’s total support for the possibility of the Maltese government reaching an agreement with the Libyan leaders regarding the possibility of the purchase of oil and gas from Libya under preferential conditions.

Dr Muscat left Malta for meetings in Libya on Saturday, following an invitation from the National Transitional Council. He is leading a delegation which also includes Karmenu Vella, Michael Farrugia, Noel Farrugia and Alex Sciberras Trigona.

In a statement, the PL said the talks are being held with a view to continue strengthening political and commercial relations between the two countries.

After meeting with Mustafa Abdul Jalil, the president of the transitional council, on Saturday, Dr Muscat visited Misrata yesterday, where he met with the leaders of the council, and discussed, among other things, ways of strengthening commercial ties.

It was a very cordial meeting, said the Labour Party, adding that the PL leader urged the Misrata leaders to provide all the help they can to the Maltese government’s delegation and the Maltese business people who will be visiting Misrata in a few days’ time.

On the possibility of the Maltese government reaching an agreement with the Libyan leaders regarding the possibility of the purchase of oil and gas from Libya under preferential conditions, Dr Muscat said such an agreement would be extremely beneficial to Malta and the Maltese people, so the PL wants to give a clear signal that it fully supports the talks between the two countries.

The president of the Libyan transitional council, on his part, expressed gratitude for the Maltese people’s assistance to the Libyans. He said he was aware of the Maltese population’s agreement in favour of such action, and reiterated that the Libyan government would be ready to work closely with whoever is given the mandate to govern in Malta in the coming years.

Yesterday, Dr Muscat and other members of the PL delegation also held talks with the leaders of the transitional council in Benghazi.

Soon after his arrival from Libya Dr Muscat addressed a press conference at the airport yesterday afternoon.. Reacting to what Prime Minister Lawrence Gonzi said about the PL’s visit to the North African country, Dr Muscat reiterated that the visit was aimed at strengthening relations between Malta and Libya.

Contrary to what Dr Gonzi insinuated, said Dr Muscat, the PL’s visit actually helped improve the country’s reputation.

He expressed his intention to appoint two ministers to deal with EU and foreign affairs separately should the PL be elected to government, as the foreign affairs minister would be able to focus specifically on the country’s relations with other Mediterranean countries. In this regard, he referred to the late President Emeritus Guido de Marco, saying that when he served as foreign minister, he gave a lot of importance to the Mediterranean region.

Article published on 16 April 2012  by The Malta Independent Online