The Libyan-Maltese Chamber of Commerce yesterday welcomed "the good news" that the Swiss government was prepared to lift the ban it had imposed on Libya's ruling elite.

The chamber said Libya's reaction to the travel ban has impacted heavily on relations between Malta and the North African state, straining political and business relations.

Switzerland, in fact, dragged most of the continent into its dispute since the ban meant that no member of Europe's passport-free zone, known as the Schengen area, could issue visas to these people. Libya reacted by refusing to issue visas to citizens from Shengen countries, including Malta, Italy and other major neighbours in the Mediterranean.

Hope was raised on Wednesday that the row between Switzerland and Libya could come to an end after the Swiss government announced it was ready to lift its ban.

The announcement followed talks in Brussels between the EU's Foreign Affairs chief Catherine Ashton and her Swiss counterpart Micheline Calmy-Rey. The Libyan response is being eagerly awaited by the Maltese government, businesses which have interests in that country and Maltese who work there.

The chamber also formally expressed its appreciation to Foreign Affairs Minister Tonio Borg who, together with Justice Minister Carmelo Mifsud Bonnici, led negotiations at EU fora.