The Central Bank of Libya has announced the launch of a new subscription for investment certificates, inviting commercial banks to participate in the issuance. The certificates have a value of 10 million dinars each and come with different maturity periods. This move is part of the central bank's efforts to regulate banking transactions using the mudarabah formula.
The new issuance, numbered 30-2026, includes certificates with three different maturity periods. The first certificate, ICD 91-2026, has a maturity period of 91 days and will expire on December 24, 2026. The second certificate, ICD 182-2026, has a maturity period of 182 days and will expire on March 25, 2027. The third certificate, ICD 365-2026, has a maturity period of 365 days and will expire on September 24, 2027.
The Central Bank of Libya has set a uniform value for the certificates at 10 million dinars each, with varying maturity periods. The bank will distribute profits between the parties involved in the mudarabah agreement, with the bank receiving 99.75% of the profits and the central bank receiving 0.25%. The expected profit margin ranges from 5.5% to 7.5% per annum, although this is an estimated figure and may vary depending on the actual investment results.
The subscription for the new certificates will be conducted in accordance with the procedures and controls previously approved for similar issuances. Commercial banks are invited to participate in the subscription, which is expected to help regulate banking transactions in Libya. The central bank's move aims to provide a new investment opportunity for banks and contribute to the country's economic development.
The Central Bank of Libya has been using various tools to regulate banking transactions, including the issuance of investment certificates. The bank has set clear guidelines for the subscription process, including the value of the certificates, maturity periods, and expected profit margins. This move is expected to enhance transparency and confidence in the banking sector.
The new investment certificates are expected to attract participation from commercial banks, which can use them to manage their liquidity and invest in the Libyan economy. The central bank's move is also expected to help stimulate economic growth and development in the country. The certificates will provide a new investment opportunity for banks, allowing them to diversify their portfolios and manage their risk.
The Central Bank of Libya's decision to launch a new subscription for investment certificates reflects its efforts to promote economic development and stability in the country. The move is expected to have a positive impact on the banking sector and the broader economy, providing a new investment opportunity for banks and contributing to the country's economic growth.
Key points
- The Central Bank of Libya has launched a new subscription for investment certificates with a value of 10 million dinars each and expected returns of up to 7.5%.
