Malta, Libya investment agreement

Malta and Libya yesterday ratified an agreement on the encouragement, guarantee and protection of investment.

Cecilia Attard Pirotta, Permanent Secretary at the Ministry of Foreign Affairs and Libya's Ambassador to Malta Saad Elshlmani, signed and exchanged the instruments of ratification in the presence of Foreign Minister Michael Frendo.

The agreement stipulates that Malta and Libya will encourage and create favourable conditions for investors from the two countries to invest in the respective territories and to admit such investments in accordance with their respective laws.

The agreement provides that investments by Maltese and Libyan investors in Libya and Malta shall not be subject to any expropriation, nationalisation or any other measures of dispossession.

This is so unless the measures are taken in the public interest and under due process of law, in an non-discriminatory manner and accompanied by provisions for the payment of adequate and effective compensation.

The investment guarantee agreement applies to investments made in the respective countries by individuals or business entities prior to the entry into force of this agreement.

The agreement, which enters into force on July 22, provides mechanisms for the settlement of disputes.