Malta has frozen millions of euros in Libyan assets following the EU’s and the UN’s decision to freeze the assets of the Libyan Investment Authority and of Muammar Gaddafi and his family, Finance Minister Tonio Fenech told The Times Business.
“We have frozen a number of assets and these are worth millions of euros. A unit has been specifically set up to track, monitor and take the necessary action to freeze those assets, and so there is a process there. However, I would refrain from divulging specific information,” he said when pressed to divulge exact figures.
Asked whether the asset freeze on companies in Malta which had Libyan Investment Authority shareholding involved very large sums of money, Mr Fenech replied: “Not at the same level as the other (Gaddafi family) assets, but yes, there are significant amounts involved.”
Mr Fenech said not all countries have published the exact figures regarding the freezing of Libyan assets and the government was still assessing the situation and has not yet taken a decision as to whether or at what point these would be made public.
Mr Fenech said the immediate impact of the Libyan crisis on the Maltese economy “has been limited” and from the information the government has received from Malta Enterprise, he believes the situation is manageable. “The impact is not as huge as was expected,” he said.
The Finance Minister dismissed a request from GRTU director-general Vince Farrugia for the government to guarantee Libya business loans as something “which should not be expected from the government” saying taxpayers should not be expected to act as an insurance company.
Mr Fenech said the Maltese government could support businesses by dealing with the new government in Libya, when one is formed, to ensure that any dues owed are fully paid.
Asked if he though Maltese Libyan economic ties will ever be the same and whether the government had initiated contacts with the Libyan rebel authority based in Benghazi, Mr Fenech said in the circumstances it is difficult to establish such contacts “and our relationship will very much depend on who ends up governing Libya.”
He added: “There is a civil war going on in Libya and it is not the opportune moment to talk about economic ties. Obviously Malta is perceived to be a state within the EU which is not supporting Gaddafi, and which in its own ways is assisting in the implementation of the no-fly zone, and therefore the protection of civilians in Libya.”
See full interview on page 3 of The Times Business.