Libyan parliament approved the privatization of the banking sector

The Libyan parliament has approved a new law that allows foreign banks to open new branches in Libya for the first time or to contribute as share holders in local banks.

The law states that the capital dedicated to the branch activity not to be less that 50 million dollars to be out under the control of the executive authority in the country.

The law also permits Libyans to found share-holders banking companies with a paid capital not to be less than $36 million.

By the end of 2004, the Libyan prime minister Shukri Ghanem said that his government intends to open the banking sector before Arab investments and that two of the main state owned banks will be privatized.

In 2004, Libya witnessed tremendous changes at the political level by returning back to the international community, and at the economic level with the beginning of reforms with the oriented economic system which has been so far adopted in the country.