Egypt refused to print Libyan money during the revolt

Ahram Online, Sunday 23 Oct 2011

The central bank declined a request from the NTC due to political and economic considerations, according to a bank source

Egypt's central bank (CBE) declined a request from the Libyan National Transition Council (NTC) to print Libyan dinars during the early months of the revolt, Asharq Al-Awasat newspaper reported on Sunday.

 

A source at the CBE told the newspaper that the NTC requested the bank’s assistance but Egypt had to decline due to "political and economic" considerations.

As for Libyan money in Egypt, the source, speaking on condition of anonymity, denied the presence of any accounts in the name of the late Libyan leader, Muammar Gaddafi, who was killed in his hometown of Sirte on Thursday.

The source added that any Libyan money related to the former regime that is in Egypt is held here in the name of government institutions.

Other financial sources said that Libyan funds in Egyptian banks are "unofficially" frozen, in what is described as precautionary measure due to the sensitive strategic relations between the two countries.

Egypt also declined many requests by Libyan banks during the revolt to liquidate letters of guarantee, ensuring that no funds were unlawfully transferred or squandered.

Similar measures were taken by the CBE during the Egyptian uprising when restrictions were placed on foreign exchanges and money transfers.

 

The exact size of Libyan assets in Egypt is not known, but it is distributed between banking, oil and agriculture.

 

The Libyan government owns 38.7 per cent of the Arab Investment Bank, based in Egypt, with total investment amounting $232.5 million, alongside other direct and indirect Libyan investments in the sector.

Short link: