Libya's Ministry of Economy and Trade has halted the commercial activities of 27 companies as it investigates their adherence to foreign trade regulations on letters of credit, affecting over $146 million in import financing and signaling tighter oversight.
The Libyan Ministry of Economy and Trade has suspended the commercial operations of 27 companies as part of an ongoing review into their compliance with foreign trade regulations. The move follows a recent decision by the Tripoli-based government granting the Ministry judicial authority to enforce the Commercial Activity Law No. (23) of 2010, enabling stricter oversight of business practices.
According to the Ministry, the suspension targets companies that have benefited from letters of credit to finance imports and other economic activities. The review covers letters of credit totaling approximately US$146.7 million, issued during the first seven months of 2026. These credits were distributed among three main beneficiaries, identified by their initials: (E.A.A.) with US$79.0 million, (H.I.A.) with US$52.2 million, and (A.A.A.) with US$15.5 million.
Regulatory Action and Scope
The Ministry's decision includes the suspension of commercial registrations, importers' registers, and licenses for companies linked to the named beneficiaries. These measures will remain in place until the competent authorities complete their examination and review of the companies' compliance with foreign trade procedures and regulations.
Implications for Trade Oversight and Market Integrity
The Ministry stated that the action is intended to enhance transparency and governance in Libya's foreign trade sector. By monitoring the use of letters of credit and verifying the integrity of related procedures, authorities aim to protect the national economy from practices that could undermine fair competition or disrupt the efficiency of import activities.
The Ministry emphasized that the suspensions are precautionary and regulatory, designed to allow for a thorough verification of company data and legal obligations. Final outcomes will be announced once the review and audit process concludes, as part of broader efforts to strengthen compliance and oversight in Libya's trade environment.
