No Obstacles to Collaboration

an interview with Farhat Omar Bengdara

Farhat Omar Bengdara Governor of the Central Bank of Libya and
Vice-Chair of Unicredit

Mr. Governor,
The recent visit of the Leader in Italy has led many commentators to discuss about the renewed commitment of Jamahiriya and Italy to increasingly integrate their economic systems. What role the institution you are chairing will play?
BENGDARA: I believe that banking and the financial sector are the major strategic areas that in the short term will benefit from the Libyan-Italian cooperation. Especially now that the Jamahiriya holds good investments in Italy. In addition, granting a license to the Italian bank Unicredit will be a further support for such cooperation. In the long term, the contents of the cooperation between the two countries could include other strategic areas concerning basic infrastructure such as roads, railways, ports, power grids and tourist infrastructures, etc.

In your opinion, what are the other strategic sectors in which the Libyan-Italian cooperation should focus further on in the short and long term?
BENGDARA: it is possible to develop the common agreement between Jamahiriya and Italy to operate together in the international market. We believe that tourism and financial investment are among the most important sectors. Given the promising opportunities and the great potential in the two countries of these two sectors, it is possible to build a firm foundation for cooperation between us.

What are your expectations now that Unicredit is reaching your country?
BENGDARA: from the entering of Unicredit in the Libyan banking market we expect an improvement of banking services in terms of quantity and quality as well as the exploitation of the long experience and know-how of the Italian bank to create a competitive environment, which helps to strengthen cooperation with banks and financial institutions operating in the Jamahiriya.

The global financial crisis has made clear that banks must help real economy and small and medium enterprises without thinking only about short-term profit. This is the “social” purpose that major economic actors must play. How will it occur in Jamahiriya?
BENGDARA: regardless of the global financial crisis and its effects, the role of banks will always be that of primary funder of the real economy and SMEs, in order to create a balanced development and foster economic growth. We reaffirm that banks are not charities with social goals to reach. Social purposes are the responsibility of Governments, through their budget.

The Jamahiriya undertook ambitious programmes of modernization. This implies that the whole country follows the Government line. Do you believe that this will happen or is there the risk of having more and less developed parts of the country?
BENGDARA: Despite the uncertainty and ambiguity of demand, it is possible to state that the ambitious programmes that Jamahiriya is implementing are scheduled plans studied by numerous bodies and approved by the National Council for planning. These programmes, adopted by the Fundamental Popular Congresses, are subsequently implemented through the budget of transformation that is issued by law by the General People’s Congress. Indeed, for the plans that are not subjected to funding through the Government budget, as the plans and programmes for development of banking, the Central Bank ensures the preparation of the strategic plan and the availability of financial resources, with the assistance and experience of international financial institutions and experts and specialists from brother and friend countries.

Do you think that operating in the financial sector in an Islamic or a Christian world could be an obstacle to a full understanding and integration between market operators?
BENGDARA: it is impossible to make distinctions. No obstacles hinder the financial collaboration between the Islamic and Christian world. Financial instruments are many and different, apart from the religious context.

How to raise new Libyan generations’ awareness that Italy’s friendship is sound?
How to make this awareness a real instrument for a mutual development of the two countries?
BENGDARA: No doubt that new Libyan generation understands the importance of friendship and cooperation between the Jamahiriya and other countries in general and Italy in particular. This friendship and this cooperation will be useful in the economic and social life of the two countries enjoying this friendship.

Thank you.