A Libyan government controlled bank in Italy is still providing letters of credit (L/Cs) according to a bank official.

Rome-based Banca UBAE SpA, which is Libya's foremost trade financing bank, appears for the time being to have avoided sanctions imposed by Italy on Libyan leader Colonel Muammar Qaddafi and his family.

Few L/C details

According to the Bloomberg news agency, a UBAE executive at the bank's Milan office confirmed that UBAE was continuing to provide L/Cs.

The official refused to provide his name or any further details of the bank's L/C operations.

Frozen assets

Italy is Libya's main trading partner, and on 5th March Rome froze Libyan assets as part of actions against Colonel Qaddafi decided by the UN.

While several European countries extended the freeze to affiliates of the country's sovereign wealth fund, the Libyan Investment Authority (LIA), Italy has so far not imposed sanctions on other Libyan entities.

Further sanctions

Italian, Libyan and French shareholders own UBAE, which has several ties to the LIA, acting, for example, as the sovereign wealth fund's broker in its European securities trades.

Italy says it is monitoring the activities of entities associated with the LIA, indicating that UBAE could yet be impacted by tougher sanctions if they materialise.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.