CBL Governor accuses Libyan Foreign Bank of losing Libya investment portfolio $400 million

CBL Governor accuses Libyan Foreign Bank of losing Libya investment portfolio $400 million

March 12, 2018 - 18:57
Posted in:
Written By: AbdulkaderAssad

The Governor of the Central Bank of Libya, Al-Siddiq Al-Kabeer

The Governor of the Central Bank of Libya (CBL) Al-Siddiq Al-Kabeer blamed Libyan Foreign Bank (LFB) for losses (400 million dollars) in the investment portfolio.

A letter signed by Al-Siddiq Al-Kabeer sent last February to LFB Chairman and Board of Directors was posted by local media.

In the letter, Al-Kabeer accused LFB of deliberately misleading the CBL regarding the investment portfolio, saying it worth 1.87 billion dollars while in fact it worth only 685 million dollars.

The CBL Governor also said that with that sum lost from the portfolio, the LFB administration bears the full legal responsibility, especially that the LFB did not cooperate with the CBL to find solutions that save the reputation of the Libyan banking sector inside and outside the country.

“It is not safe that the LFB chose to invest in private bonds that are not legally registered as those bonds have blurry benefit future, not to mention that the LFB administration invested in bonds that are payable in ten years, which violates the laws of the Board of Directors,” Al-Kabeer explained.

Meanwhile, the CBL did not issue a statement confirming or denying the letter to the LFB, which also remained silent toward the accusations.