Libya News

  Add News  

Libya loses multi-million paper profit while UniCredit stake diluted

Libya’s stake in UniCredit, one of the country’s major international investments from the Qaddafi era was slashed when the loss-making Italian bank launched an emergency $14.4 billion recapitalisation while it has missed out on a significant profit because it did not take part.

In January when shareholders in Italy’s largest bank agreed the cash call, shares held by the Central Bank of Libya working with the Libyan Arab Foreign Bank and separately by the Libyan Investment Authority represented 2.95 and 1.27 percent respectively of all Unicredit stock.

None of the Libyan entities took up the option to buy into the rights issue. Therefore, as minutes released by UniCredit today make clear, after the February capital raising the LCB stake was diluted to just 0.82 per cent of the Italian bank’s capital. No figure was given for the percentage that the LIA now holds.  These investments continue to be frozen under UN sanctions with all other Qaddafi-regime assets.

Moreover Libya has suffered a financial loss because there was clearly no spare capital to buy into the rights issue. Had it been possible to participate, Libya would be showing a substantial paper profit at least, since the shares have risen 40 percent in the last three months.

UniCredit’s largest investor is the now the US firm Capital Research and Management followed by the Abu Dhabi sovereign fund Aabar, each with just over five percent.

UniCredit, which expanded rapidly 20 years ago particularly into Eastern Europe, has been burdened with non-performing debt which makes up around 11 percent of all its lending.

In the final three months of last year it had to set aside  $14.4 billion in provisions for loans that had gone sour.  This year’s rights issue was part of a drive to restore the bank’s fortunes under new management .


Home Advertising Our Services Contact us Login Register

Libya Add Your Topic

Dear Visitor you can add free your News, Jobs, Tenders or any topic categorized under by clicking at the appropriate link below.

  Libya Tenders  

  Libya News  

  Libya Events  

  Libya Jobs  

  Libya Jobs Seekers  

  Libya Training  

  Libya NOC News  

  Libya Government  

  Libya xGPC News  

  Doing Business in Libya  

  International Companies  

  Libyan Companies  

  Libyan Training  

  Libya Auctions  

  Libya Laws  

  Libya Regulations  

  Libya Projects  

  Libya Telecom and Technology  

  Libya Announcements  

  Libya Scholarships  

  Libya Airports  

  Libya Exhibitions  

  Libya Sea Ports  

  Libya Free Zones  

  Libya Banks  

  Libya Small business  

  Libya Finance & Economy  

  Libya Healthcare  

  Libya Real Estate  

  Libya Islamic Finance  

  Libya Industries  

  Libya Construction  

  Libya Competitions  

  Libya Agriculture  

  Libya Culture  

  Libya Demography  

  Libya Geography  

  Libya Roads  

  Libya Business  

  Libya Oil  

  Business in Libya  

  Libya Grants  

  Libya Volunteer  

  Libya Rent