Libya Still Owes €3m to Cyprus

Libya still owes Cyprus around €3m, which is being pursued through diplomatic channels, according to Cyprus Mail.

Libya’s total debt to Cyprus for goods and services provided by Cypriot companies since the 1980s reached almost €6m, but the government has been able to collect approximately half of that.

The debt to the state was owed for export guarantees provided by Cyprus, while the business debts relate to trade with Libya, involving a range of products including shoes and clothing and construction services. Libya owed money to a total of 23 local firms and businesses but ten of those no longer exist, leaving 13.

Under a deal made with Libya in 2010, the money was to have been paid by March 15, 2011, when some 50 per cent was handed over to Cyprus and the cabinet at the time approved a mechanism for the distribution of the money to the local firms in question.

Months later, Libya leader Muammar Gaddafi was ousted in the civil war, throwing the issue into limbo.

The reports yesterday said the foreign ministry was making all the necessary efforts to recover the remaining amount from the new Libyan government.

(Source: Cyprus Mail)

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