On Monday 2 December the Central Bank of Libya’s (CBL) Banking and Currency Control Department issued Circular No. 20 of 2024 addressed to banks operating in Libya.
The circular allowed commercial Libyan banks the authority to grant their customers loan/debit ceilings for e-purchases on the strength of individuals’ salaries through the ‘‘Qard Al-Hassan’’ product (interest free loan), in order to overcome the difficulties facing citizens whose salaries are paid into their bank accounts regularly.
These credit ceilings are to be allocated for electronic payment operations through the services available on the strength of the customer’s salary.
The CBL said this is in its recognition of the state of necessity (liquidity crisis) and in order to avoid delays in the payment of citizens’ salaries as a result of the lack of payment from time to time.
The interest-free loans are solely for e-payments and must not be more than 60 percent of a customer’s net salary.
