The Banking and Currency Supervision Department at the Central Bank of Libya has called for the issuance of unrestricted speculation deposit certificates for clients of commercial banks who hold investment accounts.
In a circular addressed to the directors of commercial banks, the department outlined the Central Bank’s instructions regarding these certificates, stating they should be designated for investing customer balances in investment accounts at Libyan banks, with an expected annual return of 5.5% for the banks. The certificates will be issued in three maturities: 91, 182, and 365 days, respectively.
According to the circular, banks are to sign contracts for purchasing the unrestricted speculation deposit certificates with the Central Bank’s Accounts Department, corresponding to the value of the certificates issued to their investment clients, in accordance with the agreed terms, profit-sharing ratios, and purchase contracts.
As for client certificates, the department instructed banks to issue them to investment clients for the same durations announced by the bank, with an expected annual return of 5%, and designated specifically for their investment account balances.
The Banking Supervision Department also stipulated that the issuance document must specify the basic details of each certificate, including its value, maturity dates, and the certificate holder’s information.
Furthermore, each bank must determine the value of the speculation deposit certificates it issues in a way that allows the largest number of clients to invest, and aligns with the values of the certificates issued by the Central Bank.
The department emphasized that investment in speculation certificates between clients and banks must be conducted under formal contracts, which must include the issuance document numbers and related data, in line with Central Bank regulations.
