About 35 companies have requested help from the Chamber of Commerce following its call on businesses with interests and investments in Libya to come forward and present their concerns, Chamber president Helga Ellul told the Times Business.
Ms Ellul said she and the Chamber of Commerce were in constant touch with the government and Malta Enterprise over the situation in Libya and she was satisfied with the way things were being co-ordinated.
“A number of companies in Malta are entirely dependent on the Libyan market so obviously they are very worried about what is happening over there. There are questions about payments due as well as large quantities of stocks stored in Libya,” Ms Ellul said.
Ms Ellul said a meeting of the Malta Council for Economic and Social Development is to be held soon to discuss the situation in Libya which she described as being “very fluid”.
Businesses which have invested in Libya are concerned about financial security and uncertainty. In a statement the Chamber of Commerce told The Times Business a meeting with Malta Enterprise yesterday was to focus on companies’ difficulties in recouping payments due on invoices issued to Libyan clients and exposure to foreign principals on works in progress. Companies were also facing hardship as they tried to withdraw their funds from Libyan banks: balances were dropping with the Libyan dinar’s devaluation.
A string of challenges included the repatriation of stock and other assets to Malta and maintaining payroll costs – even for humanitarian reasons – when business was at a standstill, with no indication of when operations might resume. The Chamber said some specialised banks were also putting pressure on firms.
“Further undesirable consequences include increases in insurance claims reported by the financial sector,” the Chamber added.
“Companies that have invested in Libya are now faced with the prospect of having their assets and substantial investments stuck in the country. Others which have invested in the steadily growing export market have also been severely disrupted. The volatile situation has further compromised the chances of certain companies recouping historical debts.”
Through its internal internationalisation database, the Chamber had contacted affected members directly to obtain the necessary information about the problems they faced to be passed on to authorities. In the meantime, more businesses continued to approach the Chamber with their concerns.
“Following meetings with the Prime Minister and the Minister for Finance, the Economy and Investment, the Chamber’s call for a task force specifically on this issue was positively received. It is imperative that the task force meets regularly to monitor this uncertain situation at close range and to be able to act quickly and efficiently,” the Chamber added.
Meanwhile, the Chamber said it was reassured companies had managed to repatriate their Maltese staff – the foremost priority in the crisis. It was now encouraging the business community to heed the prime minister’s call to offer humanitarian assistance.
Malta has traditionally enjoyed good economic relations with Libya, and most companies trading there have officially kept quiet about the turmoil in the country. Two listed companies, Corinthia and Medserv, did, however, issue statements.
Medserv, which operates support bases for the oil and gas industry in the Mediterranean and owns one such base in Misurata, Libya, said it “significantly” curtailed its operations in Libya because of the turmoil in the country.
The Corinthia Group said on Monday its expatriate employees and their dependents at the Corinthia Hotel Tripoli and Palm City Residences have been evacuated over the past days. “The Corinthia Group is closely following events in Libya, basing our action on our responsibilities to secure the welfare of our staff and clients and providing humanitarian assistance that our resources in the country allow,” it said.
Palm City is a unique blend of superior leasehold property and luxurious living at Janzour, just 15 kilometres from Tripoli. The Corinthia Hotel Tripoli – its official name is the Corinthia Bab Africa Hotel – is a luxurious five star hotel in the heart of the Libyan capital.
It is likely that should Gaddafi survive this rebellion, economic and political ties between his regime and the Western world will never be the same. Addressing a press conference yesterday European Commission President Jose Manuel Barroso declared that Libyan leader Muammar Gaddafi had to go.
“For us it is now very clear that Mr Gaddafi is part of the problem in Libya and it is time for him to go. What is happening in Libya is outrageous and unacceptable. The EU will not allow this to continue,” he said.
Although many Maltese companies which conduct business in Libya are extremely worried about their investments there, the Libyan crisis has also proved to be beneficial for some sectors of the Maltese economy, although this is expected to be short-lived.
Hotels have reported a mini-boom due to the large numbers of foreign journalists, diplomats, military officials as well as expatriates fleeing Libya who ended up in Malta. Malta International Airport was turned to a transit base for people leaving Libya, Virtu Rapid’s catamarans were charted by the US State Department to get Americans out of the North African country and a number of ships on their way to Libya, including foreign naval vessels, have been supplied by ship chandling companies with a variety of goods.