Libya Denies Exempting Egypt from Repayment of $2bn Deposit

Libya’s Central Bank denied on Saturday exempting Egypt the repayment of a US$2 billion deposit placed at the Egyptian Central Bank.

A statement by the Libyan bank denied “rumors” circulated across social media networks claiming that the Libyan parliament decided to spare Egypt the repayment of the deposit.

Libya’s central bank chief had earlier told the Libyan News Agency that the deposit is repayable within five years.

Egypt relied on loans from several Arab states to embolden an economy weakened by the political instability since the ouster of former president Mohamed Morsi.

The conditions of Egyptians in Libya over the past months have been worsening with Egyptian drivers occasionally held hostage and thousands deported to escape infighting in Libya.

Egypt has been recently accused of staging air strikes in association with the United Arab Emirates targeting Islamist militant strongholds in Libya, though the government has officially denied it.

Last August, an Egyptian government official, who spoke on condition of anonymity, revealed that Qatar was requesting the return of its $3 billion deposited in the Central Bank of Egypt (CBE). CBE is prepared to pay the Qatari deposit value in two installments in October and November.