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BeritaDEKHO - The Chairman of the Board of Directors of the Libyan Investment Authority (LIA), Ali Mahmoud, has discussed with US Ambassador to Libya, Richard Norland, the institution's strategy for transformation and the steps taken with respect to the Libyan frozen funds. (more)
The meeting, held in Tunisia during the past few days, also touched on the contacts with the Security Council Sanctions Committee, regarding the LIA's demands to spare Libyan assets and frozen funds from negative effects, within the framework of the penal system, according to an official in the LIA.
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The Libyan Investment Authority (LIA) (المؤسسة الليبية للاستثمار) is a government-managed sovereign wealth fund and holding company headquartered in Tripoli, Libya. It was established on August 28, 2006, by Decree 208 of the General People's Committee of Libya (GPC), after the lifting of economic sanctions that had previously precluded foreign investment in Libya.
The LIA oversees and manages investments in various areas including agriculture, real estate, infrastructure, oil and gas and in shares and bonds.
It is Africa's largest sovereign wealth fund. The fund is a member of the International Forum of Sovereign Wealth Funds and is therefore signed up to the Santiago Principles on best practice in managing sovereign wealth funds.
The LIA is headquartered in Tripoli.
BP production sharing agreement
On May 29, 2007, during a visit to Muammar Gaddafi by British Prime Minister Tony Blair, British Petroleum (BP) signed a $900 million exploration and production agreement with the Libyan National Oil Company. The agreement, which will likely involve an estimated US$2 billion in investment, covers three massive, largely unexplored tracts. The NOC signed the agreement with the LIA as BP's 15% partner in a production sharing agreement (PSA).
Economic and Social Development Fund
The LIA also manages the Economic and Social Development Fund (ESDF). Established in February 2006, the ESDF manages substantial assets in Libya across a number of sectors to benefit Libya's poor. The LIA's share in BP's PSA provides a direct conduit via which oil wealth can be recycled. However, some Libya experts believe that the presence of two state-owned companies in BP's deal reflects divisions and tensions at the executive level in Libya, particularly over who controls the oil wealth.
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Libyan-Qatari fund
During August 2007, LIA agreed to establish a Libyan-Qatari joint investment fund for $2 billion equally with the Qatar Investment Corporation (QIC). Also, the General People's Congress secretary signed two agreements in Doha in July 2007 to establish a Libyan-Qatari Bank between QIC and the Central Bank of Libya. An agreement was also signed to establish a joint company for real estate development between Al-Diar real estate investment company (Qatar) and the Libyan Arab Foreign Investment Company.
Investment in Fortis
In July, 2008, the LIA bought a share in the Dutch-Belgian bank of Fortis, which needed additional funds to maintain solvency. The LIA did not confirm the investment, since they were not required by Dutch or Belgian law to do so. However, later that week, the Dutch Minister of Finance Wouter Bos admitted that the situation 'had his attention, as well as that of the Dutch Central Bank, considering previous Libyan involvement in international terrorism.
Investments in Juventus
As of June 2010, Lafico held 7.5% of the total shares of Italian football club Juventus.
Investments in equity and currency trades
Between January and June 2008, the LIA paid $1.3 billion for options on a basket of currencies and options on six stocks (Citigroup Inc., UniCredit SpA, Banco Santander, Allianz, Électricité de France and Eni SpA) via Goldman Sachs. By February 2010, the value of these investments was 0.025 billion - a 98% loss.(adm)
Nb. Yuk gabung IICH dan IMECH