Interest-Free Loans for E-Purchases Launched by Central Bank of Libya

The Central Bank of Libya (CBL) has introduced a new initiative aimed at alleviating the country’s ongoing liquidity crisis while embracing the modern financial era. Through this pioneering program, commercial banks are now authorized to offer interest-free loans for electronic purchases, providing much-needed support to salaried customers who struggle with accessing cash. Detailed in Circular No. 20, drafted by the Banking and Currency Control Department, the initiative permits credit limits of up to 60 percent of customers’ net salaries. These interest-free loans are offered for electronic transactions conducted using existing banking platforms, consolidating the country’s push towards digital payments.

How the Program Works

Operating under the Islamic banking principle known as "Qard Al-Hassan," the interest-free loan program is tailored for salaried individuals who face difficulties in accessing physical cash. This principle allows the extension of interest-free credit, strictly adhering to the tenets of Islamic finance which prohibit the earning of interest from loans. By facilitating electronic transactions through digital services like online banking and electronic payment systems, the CBL effectively targets and mitigates cash flow issues faced by Libyan citizens. Commercial banks licensed in Libya are required to comply with these new guidelines. This ensures a uniform approach across the banking sector towards promoting digital solutions while remaining faithful to Islamic banking principles.

Broader Implications for Libya’s Financial Landscape

The Central Bank of Libya (CBL) has launched a groundbreaking initiative to address the ongoing liquidity crisis in the country while adapting to the modern financial age. This innovative program allows commercial banks to extend interest-free loans for electronic purchases, which is a significant benefit for salaried individuals who face difficulties in accessing cash. According to Circular No. 20, developed by the Banking and Currency Control Department, the initiative sets a credit limit of up to 60 percent of the net salaries of eligible customers. These interest-free loans are designed for electronic transactions carried out through existing banking platforms, reinforcing Libya’s commitment to advancing digital payments. This move aims to not only alleviate the immediate cash flow issues but also to integrate more advanced financial practices into the daily lives of Libyans, ensuring that the population benefits from modern banking technologies while navigating the liquidity challenges.

Explore more

Why Is Real-Time Activation the Future of Marketing?

In the ever-accelerating digital marketplace, marketing success hinges not just on connecting with customers, but on doing so at the precise moment their interest peaks, making real-time activation a critical strategy. Tools like Customer Data Platforms (CDPs) were once celebrated as the pinnacle of managing and personalizing customer interactions, offering a way to streamline scattered data into actionable insights. Yet,

AI in HR: Efficiency Gains and Ethical Hiring Challenges

In the rapidly evolving landscape of human resources, artificial intelligence (AI) has emerged as a transformative force, particularly in the hiring process, promising to redefine how talent is identified and recruited. With tools like applicant tracking systems (ATS) and chatbots, companies can streamline operations, cut costs, and handle vast volumes of applications with unprecedented speed. However, this technological leap forward

Wellbeing Platforms Drive Benefits Engagement Success

In today’s fast-paced corporate landscape, employee wellbeing has evolved from a mere perk to a fundamental pillar of workplace culture, playing a pivotal role in how organizations attract, retain, and motivate talent. As companies invest significant resources into benefits programs designed to support physical, mental, and financial health, a persistent challenge remains: ensuring that employees not only access these offerings

Trend Analysis: 6G Technology Breakthroughs

Imagine a world where internet speeds are so fast that downloading an entire high-definition movie takes mere milliseconds, and devices communicate with an intelligence that rivals human decision-making. This isn’t a distant sci-fi fantasy but a near-future reality with the advent of 6G technology. As the successor to 5G, this next-generation network promises to redefine connectivity, pushing the boundaries of

Can 6G Chips Deliver Internet Speeds Over 100 Gbps?

I’m thrilled to sit down with Dominic Jainy, a trailblazer in the realm of cutting-edge technology. With a robust background in IT and deep expertise in artificial intelligence, machine learning, and blockchain, Dominic has been at the forefront of exploring how emerging tech can revolutionize industries. Today, we’re diving into his insights on a groundbreaking development in wireless communication—a new