Libya is asking the United Nations Security Council (UNSC) to approve a sanctions exemption for its blacklisted sovereign wealth fund, in order to halt billions of dollars in losses caused by ineffective management of frozen assets.
A letter from Libya’s Ambassador to the United Nations Ibrahim Dabbashi said the losses incurred at the Libyan Investment Authority (LIA) are the result of UN sanctions imposed in 2011. “The LIA estimates that in 2014 alone, instead of increasing the value of its assets base, it had real losses of $721 million,” Dabbashi said. He added that the LIA, which has roughly $67 billion in total assets, “lost an additional $1.6 billion to $2.3 billion in what would have been returns on investment if its assets had been properly invested in conservative investments with competitive interest rates.” Dabbashi asked the UNSC to adopt a resolution that would allow the LIA to transfer funds between frozen accounts and permit reinvestment and the opening and closing of accounts. The current sanctions regime makes the assets virtually untouchable. [Reuters, 3/30/2016]
Turkey’s gross domestic product (GDP) grew 4 percent in 2015, boosted by an unexpectedly strong expansion in the fourth quarter. The economy grew 5.7 percent in the fourth quarter of 2015, mainly due to a rise in consumption and public spending. Economists had expected expansion of 5.2 percent in the fourth quarter. Deputy Prime Minister Mehmet Simsek said the 2015 growth was in line with the government’s medium-term program and made it the fourth fastest-growing economy among G20 countries. “This success was achieved despite last year’s two general elections, increasing geopolitical tensions in our region, problems in our trade partners and global financial market volatility,” he said. [Reuters, Bloomberg, Hurriyet, 3/31/2016]
Egypt’s current account deficit reached $8.9 billion in the first half of fiscal year 2015/2016, more than double the deficit the year before, the Central Bank of Egypt (CBE) said in a statement Wednesday. The widening deficit was driven partly by a decline in net transfers, which fell to about $3.99 billion in the second quarter of the fiscal year from around $5.79 billion in the same period a year earlier. Net official transfers, including cash and commodities, fell to $10.3 million in the second quarter from $1.13 billion in the same period a year earlier. A steep decline in the services surplus, from $1.9 billion to $543.7 million, also contributed to the widening of the deficit. Tourism revenues fell by almost a third to $2.7 billion from $4 billion. Also on Wednesday, Egypt’s government approved a draft state budget for 2016-17 that targets economic growth of 5 to 6 percent. [Reuters, 3/30/30216]
The Central Bank of Tunisia (BCT) said Thursday that tourism revenue in first two months in 2016 fell by 54 percent to compared to the same period of 2015. Tourism revenues in 2015 as a whole fell by 35 percent. The decline follows two major attacks by Islamist militants last year that targeted the industry and killed dozens of foreigners. Meanwhile, the BCT on Thursday kept its key interest rate unchanged at 4.25 percent. The bank last cut its main interest rate in October from 4.75 percent in a bid to boost economic growth as inflation fell. [Reuters, 3/31/2016]
Iraq agreed to a loan from Japan worth $220 million to help fill a funding gap in its 2016 budget, the Iraqi Finance Ministry said Thursday. “This loan comes as part of the joint funding with the World Bank that has already been presented to Iraq as a loan to support the development policy for financial reform,” the Finance Ministry said in a statement. The Ministry said that since 2008, it has signed 23 loan agreements with the Japan International Cooperation Agency. [Reuters, 3/31/2016]
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Libya requests UN sanctions exemption for sovereign wealth fund
Libya is asking the United Nations Security Council (UNSC) to approve a sanctions exemption for its blacklisted sovereign wealth fund, in order to halt billions of dollars in losses caused by ineffective management of frozen assets. A letter from Libya’s Ambassador to the United Nations Ibrahim Dabbashi said the losses incurred at the Libyan Investment Authority (LIA) are the result of UN sanctions imposed in 2011. “The LIA estimates that in 2014 alone, instead of increasing the value of its assets base, it had real losses of $721 million,” Dabbashi said. He added that the LIA, which has roughly $67 billion in total assets, “lost an additional $1.6 billion to $2.3 billion in what would have been returns on investment if its assets had been properly invested in conservative investments with competitive interest rates.” Dabbashi asked the UNSC to adopt a resolution that would allow the LIA to transfer funds between frozen accounts and permit reinvestment and the opening and closing of accounts. The current sanctions regime makes the assets virtually untouchable. [Reuters, 3/30/2016]
Turkish economy grew 4 percent in 2015, beating estimates
Turkey’s gross domestic product (GDP) grew 4 percent in 2015, boosted by an unexpectedly strong expansion in the fourth quarter. The economy grew 5.7 percent in the fourth quarter of 2015, mainly due to a rise in consumption and public spending. Economists had expected expansion of 5.2 percent in the fourth quarter. Deputy Prime Minister Mehmet Simsek said the 2015 growth was in line with the government’s medium-term program and made it the fourth fastest-growing economy among G20 countries. “This success was achieved despite last year’s two general elections, increasing geopolitical tensions in our region, problems in our trade partners and global financial market volatility,” he said. [Reuters, Bloomberg, Hurriyet, 3/31/2016]
Egypt’s current account deficit $8.9 billion
Egypt’s current account deficit reached $8.9 billion in the first half of fiscal year 2015/2016, more than double the deficit the year before, the Central Bank of Egypt (CBE) said in a statement Wednesday. The widening deficit was driven partly by a decline in net transfers, which fell to about $3.99 billion in the second quarter of the fiscal year from around $5.79 billion in the same period a year earlier. Net official transfers, including cash and commodities, fell to $10.3 million in the second quarter from $1.13 billion in the same period a year earlier. A steep decline in the services surplus, from $1.9 billion to $543.7 million, also contributed to the widening of the deficit. Tourism revenues fell by almost a third to $2.7 billion from $4 billion. Also on Wednesday, Egypt’s government approved a draft state budget for 2016-17 that targets economic growth of 5 to 6 percent. [Reuters, 3/30/30216]
Tunisia tourism revenue hit hard by last year’s attacks
The Central Bank of Tunisia (BCT) said Thursday that tourism revenue in first two months in 2016 fell by 54 percent to compared to the same period of 2015. Tourism revenues in 2015 as a whole fell by 35 percent. The decline follows two major attacks by Islamist militants last year that targeted the industry and killed dozens of foreigners. Meanwhile, the BCT on Thursday kept its key interest rate unchanged at 4.25 percent. The bank last cut its main interest rate in October from 4.75 percent in a bid to boost economic growth as inflation fell. [Reuters, 3/31/2016]
Iraq signs $220 million loan from Japan to support 2016 budget
Iraq agreed to a loan from Japan worth $220 million to help fill a funding gap in its 2016 budget, the Iraqi Finance Ministry said Thursday. “This loan comes as part of the joint funding with the World Bank that has already been presented to Iraq as a loan to support the development policy for financial reform,” the Finance Ministry said in a statement. The Ministry said that since 2008, it has signed 23 loan agreements with the Japan International Cooperation Agency. [Reuters, 3/31/2016]
Also of interest
Saudi Aramco expanding oil and gas projects despite low prices | Bloomberg
Vodafone Egypt owes Telecom Egypt $506.8 million in deferred profits | Reuters
Egypt’s Ezz Steel returns to profit in fourth quarter | Reuters
Agreement signed to set up Libya-Dutch Chamber of Commerce | Libya Herald
Italy’s Eni moves deeper into Morocco exploration | Al Bawaba
Japan makes $71 million payment to back Morocco’s green plan | Trade Arabia
Moroccan royal holding firm SNI reports 7.7 percent drop in 2015 profit | Reuters
Syria PM Says Damascus subjected to economic war | AP
Turkish exports rise for first time in four months | Bloomberg