The Libyan Foreign Bank (LFB) has condemned Burkina Faso’s “illegal” decision to nationalise the Libyan-Arab Bank for Commerce and Development, which was created in partnership with Libya.
Khaled Algonsel, Director of the Libyan Foreign Bank, stated on Sunday that this unlawful decision was made despite efforts by the LFB and the Libyan Ministry of Foreign Affairs to reach a legal resolution with Burkina Faso.
Last Thursday, the Burkina Faso government announced the nationalisation of the Libyan-Arab Bank for Commerce and Development, claiming the move was aimed at ensuring better governance of the bank.
Algonsel explained that the bank was established in 1984 through a partnership between the Libyan Foreign Bank and Burkina Faso, with a capital of $18 million, shared equally between the two parties. This announcement came during a meeting held by Libyan Prime Minister Abdul Hamid Dbeibeh to review Libya’s investments in Africa.
He noted that they are coordinating with the West African Committee via the Ministry of Foreign Affairs and a specialised international office to address this issue.
In its justification for the nationalisation, the Burkina Faso government stated that “after 36 years of operation, the bank continues to face significant challenges that prevent it from functioning effectively and achieving its goals.” It blamed the Libyan side, adding, “Over the years, there has been insufficient support from the Libyan side, which has only provided its share of the social capital.”
Burkina Faso authorities claimed that Libya’s lack of financial support often led to conflicts between the shareholders on various issues, such as the selection of the general manager and necessary structural reforms that Libya consistently opposed, even when deemed essential.
They accused the Libyan side of rejecting all initiatives taken by Burkina Faso, including capital increases, resource mobilisation support, opening capital, and providing resources in the form of current accounts for shareholders.
