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2025-09-25

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.

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[Central Bank of Libya Logo]

Central Bank of Libya P.O. Box 1103 | Telegram Address: MasrafLibya - Tripoli, Libya

Circular No. 28/2025 Date: 2 Rabi' al-Thani 1447 Corresponding to: September 25, 2025

To: General Managers of Banks Greetings,...

Based on the provisions of Law No. (1) of 2005, as amended by Law No. (46) of 2012, and the Central Bank of Libya Board of Directors Decision No. (9) of 2024 regarding the issuance of Absolute Mudarabah Investment Certificates, and in light of the Central Bank's supervisory and regulatory role.

With reference to Circular No. (3) of 2018 regarding the implementation of Standard No. (12) governing Absolute Joint Investment Accounts, Circular No. (4) of 2021 regarding the implementation of Standard No. (18) governing deviations and deficiencies in contracts, and Circular No. (19) of 2024 regarding the Banking Sector Governance Guide.

And to Circular No. (22) of 2024 regarding Absolute Mudarabah Investment Certificates through investment accounts, and Circular No. (15) of 2025 regarding the commencement of issuing Absolute Mudarabah Investment Certificates with maturity periods of (91), (182), and (365) days, with an expected annual return for banks of (5.5%).

In the context of the Central Bank of Libya fulfilling its role in activating monetary policy tools, and implementing the strategic plan to develop the Libyan banking sector and diversify its income sources, we hereby inform you of the Central Bank's intention to issue investment certificates valued at (15 billion dinars) starting from October until December 31, 2025, according to the time periods stipulated in Circular No. (15) of 2025 referenced above, with an expected annual profit margin for Absolute Mudarabah Investment Certificates of (7.5%) for banks and (6.5%) for investment account clients, subject to the following controls:

  1. The issuance document specifies the certificate's basic data, its value and number, maturity dates, and holder details.
  2. Banks shall sign a subscription agreement for investment certificates with the Accounts Management Department at the Central Bank of Libya, governing the relationship between both parties and clarifying profit distribution ratios and contract controls.
  3. Profits are distributed according to the realized profit from the Central Bank's investment base, and by the distribution ratios specified in the contract, between both parties.
  4. The minimum value of an Absolute Mudarabah Investment Certificate issued by banks shall be (10,000 LYD), ten thousand Libyan dinars.
  5. Clients may subscribe to any number of investment certificates issued by banks.

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[Central Bank of Libya Logo]

Central Bank of Libya P.O. Box 1103 | Telegram Address: MasrafLibya - Tripoli, Libya

  1. The client shall sign a subscription agreement for Absolute Mudarabah Investment Certificates with the bank, specifying maturity dates, profit ratios and distribution, and governing the relationship between both parties, approved by the bank's Board of Directors and Sharia Supervision Authority. These agreements shall specify issuance document numbers and their details, in accordance with the controls, conditions, and instructions issued by the Central Bank of Libya.
  2. The value of investment certificates is deducted from the client's investment account at the bank.

For your information, you are requested to prepare and launch Absolute Mudarabah Investment Certificates for your bank's clients who hold investment accounts, consistent with the values, dates, and time periods of the investment certificates announced by the Central Bank of Libya above.

Peace be upon you,

Abdul Magid Mohammed Al-Maqouri Director of the Banking and Currency Supervision Department

Copy to: Mr. / The Governor Mr. / The Deputy Governor Mr. / Chairman of the Central Sharia Supervision Authority - Central Bank of Libya Mr. / Director of Accounts Management - Central Bank of Libya Mr. / Director of Financial Markets Department - Central Bank of Libya Mr. / Director of Research and Statistics Department - Central Bank of Libya Mr. / Deputy Director of Banking and Currency Supervision Department Messrs. / Deputy Director of Banking and Currency Supervision Department for Banking Supervision Affairs / Benghazi Mr. / Deputy Director of Banking and Currency Supervision Department for Islamic Banking Affairs Mr. / Deputy Director of Banking and Currency Supervision Department for Office Supervision and Compliance Monitoring Mr. / Deputy Director of Banking and Currency Supervision Department for Inspection Affairs Messrs. / Board Chairmen of Banks Messrs. / Chairmen of Sharia Supervision Authorities at Banks Mr. / Director of Banking Sector Supervision Department - Libyan Court of Audit Mr. / Director of the General Administration for Supervision of Economic and Investment Sectors - Administrative Control Authority Islamic Banking Department

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Phone: +218 333 3591 - Fax: +218 21 444 1488 - www.cbl.gov.ly - Swift code: CBLJLYLX

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