EU4PSL focuses on facilitating access to finance for entrepreneurs and start-ups in Libya through a set of action targeting major financial players in Libya:
The project aims at increasing Libyan financial institutions capacities to comply with international banking standards. It provides support to Libya Central Bank in implement new regulations, especially those related to financial products suitable for small and medium businesses. It also supports banks to improve their capacities in offering financial services for medium and small businesses.
EU4PSL also works to comprehensively restructure the Credit Bureau. The Libyan Credit Bureau gathers personal details, loans and account information of Libyan borrowers. It is particularly useful to determine the solvability of organizations, which seek to obtain credit. As it has been the case in different countries, the restructuring of the LCB in accordance to the international standards will lead to the following:
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Banks will have a sound basis of data in assessing the risk associated with credits
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Banks will be more motivated to grant loans as they will more informed about their client’s background;
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Reduction of the level of non-performing loans.
EU4PSL actions towards a better access to finance also imply supporting the reactivation of the Libyan National Guarantee Fund. The National Guarantee Fund serves to help businesses guarantee their credit and thus, improve their ability to get a credit. This activity entails:
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Implement the already developed policies and procedures
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Support the Fund in employing the required Human Capital
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Train the Fund’s employees in analyzing credit and risk assessment
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Monitor and Evaluate the Fund’s performance during the first year of operation and implement changes whenever required.
