Libya: Banks raise service charges amidst a cash shortage

Jan 06, 2017

The lingering cash shortage has led to increase in bank service charges.

Commercial banks in Libya have raised service charge amidst a prolonged acute cash shortage in the country. The increased charges cover new cheque book issue, certified checks and other financial transactions which vary from one bank to the other. Issuing of new chequebook has been increased to LYD25 from LYD10 while certified cheque currently cost LYD 25 per cheque. The Governor of Central Bank of Libya (CBL), Al-Siddiq Al-Kabeer had earlier noted that the severe cash shortage is connected to lack of security and lack of political stability in Libya. Also speaking on the cash crisis, the CEO of Al-Jomhouriya Bank, Musbah Al-Ekari said "shortage of cash at the Libyan banks is a security issue and our bank branches have been more than once under pressure by those who shoulder weapons." To ease the cash shortage, the Bank of Commerce and Development earlier introduced Libya's first local travellers' cheques which were printed in different denominations. However, the shortage still persists as workers find it difficult to withdraw salaries from the bank.