Reopening Stock Exchange part of finance diversification, job creation and private sector development: Ministry of Finance
By Sami Zaptia.
London, 8 April 2021:
At the Ministry of Planning in Tripoli yesterday, the Minister of Planning, the Minister of Economy and Trade, representatives of the Minister of State for Economic Affairs and a group of experts in the ministries, met to discuss mechanisms for reactivating the Libyan Stock Market due to its importance in advancing development and investment.
The Minister of Finance focused on the extent of the importance of the Stock Market on the economy, on the provision of multiple long-term financing options as well as job creation.
The meeting also addressed the financing imbalance that arises from short-term funding sources, the potential doubling of GDP growth rates, curbing deficits in the budget, lowering inflation rates, correcting price distortions in the economy, and the resultant positive effects of the so-called multiplier effect.
Reasons for failure of Libya’s Stock Market
The reasons for the failure of Libya’s Stock Market’s over the past years, included:
1- Political instability.
2- Failure to provide technical support by the state to the Stock Market and the termination of contracts with specialized companies.
3- Failure to support and activate the role of the Stock Market to practice its aims.
The meeting agreed on several recommendations, including:
- The necessity for the Libyan Stock Market Authority to start its work through a timed strategic plan.
- This should include the activation of the Stock Market, brokerage companies and the rest of the licenses concerned with the market.
- These are to be announced and approved by the government, urging everyone to adhere to them, and to play the role of this body with all relevant parties.
- The government, the Central Bank of Libya and the listed companies to provide a suitable climate for investment in Libya.