Upon initiative of the Central Bank of Libya, the Government of Tripoli has completed the merger between Jamahiriya Bank and Umma Bank, which are respectively the first and fifth biggest state banks in the country. The new institution, which will remain under state control, would be called Libyan Bank, with a capital of $6.23 billion.

The objective is to create an institution capable of playing an active role in the financing of big projects for the infrastructural development of the country and increase the financing activities to companies and private entities.

The operation is part of a series of initiatives aimed at modernising the country's bank system, including privatisation of Sahara Bank (in which French group BNP Paribas has acquired a 19% stake) and opening of Gulf-Libyan Bank due to the activity of First Gulf Bank (Abu Dhabi), the major bank group in the Emirates, the Italian Embassy to Libya announced in a statement.

[Ljbc]