Libya’s Central Bank launches Curiosity-Free E-Cost Loans

Libya’s Central Bank introduced Wednesday that each one business banks working in Libya can now provide interest-free loans for digital purchases to assist residents address the nation’s ongoing liquidity disaster.

The initiative, outlined in Circular No. 20 by the Banking and Currency Control Department, permits banks to increase credit score limits of as much as 60 % of shoppers’ internet salaries, completely for digital transactions via current banking platforms.

Operating beneath the Islamic banking precept of “Qard Al-Hassan,” this system targets clients who obtain common wage deposits via their financial institution accounts however battle with money accessibility.

“This measure recognises the state of necessity and aims to prevent delays in citizens’ access to their salaries,” the Central Bank of Libya (CBL) stated in its directive to business banks.

The new coverage represents the CBL’s newest effort to handle periodic liquidity shortages whereas selling digital banking options within the North African nation. All banks licensed to function in Libya are required to adjust to the round’s pointers.

The credit score facility applies solely to digital fee operations performed via banks’ current digital companies, together with on-line banking platforms and digital fee programs obtainable to account holders.

Libya has confronted persistent liquidity challenges lately, pushing the banking sector to undertake extra digital fee options. This newest measure aligns with broader efforts to modernise the nation’s monetary infrastructure whereas adhering to Islamic banking ideas.