Regulatory Alerts2025-09-25
Central Bank of Libya Circular No. 28/2025
The Central Bank of Libya issued Circular No. 28/2025 to mandate the launch of Absolute Mudarabah Investment Certificates valued at 15 billion Libyan dinars, with an expected annual profit margin of 7.5% for banks and 6.5% for investment account clients, valid from October to December 31, 2025. Banks are required to establish subscription agreements with the Central Bank's Accounts Management Department that define profit distribution ratios, maturity periods of 91, 182, and 365 days, and a minimum certificate value of 10,000 LYD. The directive further instructs bank management and Sharia supervisory authorities to approve these agreements, ensure deductions from client investment accounts, and align all operational controls with the Central Bank's existing monetary policy and governance standards.