The unfolding situation in Libya could have serious repercussions on Malta and its economy, apart from the effect on Maltese investors, Prime Minister Lawrence Gonzi said yesterday.

Addressing social partners at the beginning of an urgent Malta Council for Economic and Social Development meeting to discuss the situation in Libya, Dr Gonzi said Malta had to keep its feet on the ground and identify solutions to curb the serious effects of the Libyan crisis on the Maltese economy.

This was the second phase in the government’s dealings with the problem, with the first having been the evacuation of Maltese nationals from Libya. Now, through dialogue with the social partners, the government had to identify the best way to ease the economic impact of the crisis. The MCESD, he said, would analyse what had taken place and the way forward.

The meeting then proceeded behind closed doors. Maltese companies have investments in Libya running into millions of euro in sectors ranging from tourism and medical services to oilfield services and engineering and infrastructural works.

About 35 companies had requested help from the Chamber of Commerce, Enterprise and Industry following its call on businesses with interests and investments in that country to come forward with their concerns.

Companies are also facing hardship as they tried to withdraw their funds from Libyan banks, with balances slipping with the devaluation of the Libyan dinar.

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