The EBRD, during its Annual Meeting on 15 May 2014, approved Libya’s membership with a view to becoming an EBRD recipient country, which would enable Libya to benefit from the Bank’s investment programmes.
Libya sought EBRD membership in 2013 with a view to leverage its economic potentials with the Bank’s support and role in helping the country implement programmes of economic reform and contributing to its economic growth.
Although the decision to grant Libya recipient country status will be taken separately, the approval of Libya’s membership is an important and encouraging development.
Beside the expected role of EBRD to provide project financing for banks, industries and businesses for both new ventures and investments in existing companies, it will be vital that the Bank takes part in the legacy management of a significant number of publicly owned companies.
This step by the Libyan authorities will inject more trust in the democratisation process being witnessed as the mandate of the EBRD stipulates that it must only work in countries that are committed to democratic principles as well as the credibility of its institutions despite the challenges Libya faces as part of its transition following the end of the revolution.
It will be very interesting to see how Libya’s journey within the EBRD framework continues.