LIA says Sanctions have cost it $4.1bn

By John Lee.

The Libyan Investment Authority (LIA) has said that the value of its portfolio would have been approximately $4.1 billion higher if sanctions had not been imposed and its equity assets had performed in line with the market.

It says this analysis follows a recent independent report compiled by Deloitte, which assessed that there has been a significant negative impact on the value of the investments held by the LIA and its subsidiaries as a result of the freezing of its assets under UN sanctions.

At a virtual meeting on Tuesday between the LIA, UNSMIL and the UN Security Council Sanctions Committee, LIA Chairman and Executive Director, Dr Ali Mahmoud Hassan Mohamed, reaffirmed Libya's respect for the sanctions regime, noting the fund's full intention to operate within its parameters.

He reiterated that the LIA does not wish to unfreeze the assets, but is merely looking at feasible ways to more actively manage Libya's frozen assets to avoid losses.

According to an LIA statement, the Chairman of the UN Security Council Sanctions Committee, Jurgen Schulz, praised the progress of LIA's transformation programme this year and the alignment of the fund with international best-practice standards.

It adds:

"Following these positive discussions, the group will seek to reconvene next year, where the LIA will look to present its recommendations and practical solutions to effectively managing Libya's frozen asserts within the sanctions framework.

"The LIA takes its duty to preserve the Libyan people's future wealth seriously, and looks forward to building on this positive momentum with our key partners to continue protecting and growing the wealth of the Libyan people for current and future generations."

(Source: LIA)

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