Possible French court ruling threatens some of Libyan Investment Authority assets

The Libyan Investment Authority faces the risk of confiscation of some of its assets and frozen funds deposited in Western and French banks; as a result of the repercussions of the compensation ruling issued in favor of the Kuwaiti real estate “Al-Kharafi Group”, which is demanding compensation from the Libyan state in excess of one billion dollars, in return for canceling its real estate project in 2006 in Libya.

A report published by the “Africa Report” magazine indicated that the latest round of dispute between the Kuwaiti “Kharafi Group” and the Libyan Investment Authority took place on September 14 before the Court of Appeal in Paris, and may lead to the issuance of a verdict to seize hundreds of millions of euros deposited in favor of the institution in French banks, in addition to debt securities deposited with the Société Générale Bank, and some other Libyan assets to fulfill a court ruling in compensation issued in 2013 by Egyptian Arbitration Chamber.

The Court of Appeal in Paris faces two contradictory rulings issued in 2019, one of which was issued by the Paris Court of Appeal, which approved the confiscation of Libyan funds in favor of the Al-Kharafi Group, and the other issued by the Versailles Court of Appeal that granted immunity to the Libyan Investment Authority from implementation; which allows it to protect its assets.

It is noteworthy that the judicial dispute that erupted between the “Al-Kharafi Group” and the case management in Libya; goes back to the Libyan state’s termination of a real estate contract concluded with the Kuwaiti group to establish a tourist real estate project in the Janzour area, west of Tripoli, in 2006.

Related Articles

Back to top button