Libya Detains 6 Bank Officials Over US$1.3 Million Loan
LIBYA · BANKING
Key Facts
- —The country Libya is an oil-rich North African state where oil supplies more than 97% of public revenue and rival authorities compete for power.
- —What happened On Sunday 11 October, Libya’s Attorney General’s Office said six National Commercial Bank officials were ordered into pretrial detention.
- —Who is held A former head of the bank’s branches department in Tripoli, four credit and marketing staff, and a former assistant branch manager.
- —The money A credit facility of €1.15 million (about US$1.29 million), granted without the collateral the rules require, prosecutors say.
- —Also ordered The arrest of the borrower, who is not named, and steps to recover any gains obtained unlawfully.
- —Still open No names, no charge sheet and no trial date have been released; all six are presumed innocent.
Libya’s Public Prosecution has ordered six National Commercial Bank officials held in pretrial detention over a €1.15 million (about US$1.29 million) loan. For US companies weighing Libya’s oil-funded economy, the case is a window into how credit gets approved inside its banks.
The Attorney General’s Office announced the order on Sunday 11 October, saying the credit line broke lending rules and lacked proper collateral. Prosecutors also ordered the borrower arrested and moved to recover any unlawful gains.
What the Prosecutors Say Went Wrong
According to the statement, the bank officials approved the credit facility in breach of the rules on paying out funds. Prosecutors say no tangible collateral secured repayment.
The Attorney General’s Office said the dealings produced illicit gain, the accusation behind the detentions. It runs Libya’s public prosecution and posts its detention orders on its official Facebook page.
The office also ordered the arrest of the person who received the credit. It began steps to recover benefits obtained in breach of the law, and neither the borrower nor the staff were named.
Al Wasat, a Libyan news site, reported the order in Arabic on Sunday evening. The English-language Libya Herald carried the same list of six posts in English.
Who the Six Bank Officials Are
The list is led by a former director of the bank’s branches department in Tripoli, the capital. The head of the credit office and his deputy are also held.
So is the head of the marketing office in the same department. At the bank’s Al-Mina branch, the order covers a former assistant branch manager and the head of its credit section.
The National Commercial Bank says on its website that it has worked in Libyan banking for more than 55 years. It lists more than 90 branches.
Pretrial detention in Libya means suspects stay in custody while prosecutors investigate. It is not a conviction, and none of the six bank officials has been tried.
Three Days of Graft Detentions in Libya
The bank order was one of several the prosecutors announced in three days. On Friday 9 October, they ordered the detention of a Waha Oil Company engineering director over a US$140 million oilfield rehabilitation project.
Waha Oil Company is one of the producers under the state National Oil Corporation, which runs Libya’s oil industry.
On Saturday 10 October, they detained the manager of North Africa Bank’s branch in the town of Ghadames and his assistant. That case involves 13 million dinars (about US$2.02 million), the Libya Observer reported.
The dinar figures use about 6.43 dinars to the US dollar on 12 October 2026. The euro figure uses about 0.89 euros to the dollar on the same day.
On Sunday, the office also announced the detention of two education officials in the central district of Jufra over payments of 250,000 dinars (about US$38,900).
In July, prosecutors held the Central Bank of Libya’s information security chief and its IT director after a cyberattack, the Libya Observer reported.
Why Libya’s Banks Matter Beyond Its Borders
Libya’s banks handle the cash of an economy that runs on oil. Oil supplied more than 97% of state revenue from January to September, the Libya Herald reported from central bank data.
The Central Bank of Libya, which manages the country’s oil income, recorded a US$4.7 billion foreign-currency gap from January to September. Its foreign assets fell to US$95 billion from US$99.4 billion at the end of 2025.
Politics shapes all of it. The Government of National Unity in Tripoli, led by Prime Minister Abdul Hamid Dbeibah, competes for authority with rival institutions in eastern Libya.
The House of Representatives, Libya’s parliament, sits in the east. At a session in Benghazi on Monday 5 October, lawmakers moved to replace Speaker Aqila Saleh, who called the meeting unofficial.
Presidential Council head Mohammed Menfi has called the main leaders, Dbeibah and Saleh among them, to talks in Tripoli on Sunday 18 October.
What It Means for US Readers
For US investors and exporters, credit discipline at Libyan banks is a practical risk. Loans granted without collateral can leave a lender exposed if borrowers fail to repay.
On Wednesday 7 October, Libya and the United States signed a telecoms and 5G framework. A strategic framework signed with the US State Department targets digital infrastructure and opportunities for US companies.
Massad Boulos, President Trump’s adviser for Arab and African affairs, welcomed the agreement. Firms that follow such openings would rely on Libyan banks for payments, credit and guarantees.
Cases like this show prosecutors are watching how bank officials approve loans. For readers new to the country, our guide to Libya’s rival governments and oil explains who controls the money.
What Is Not Known
The statement did not name the six bank officials or the borrower, so it is unclear who received the €1.15 million (about US$1.29 million). It also did not say when the loan was granted.
Prosecutors have not said how much of the money was repaid, if any, or how much they hope to recover. Nor have they set out what each official is accused of doing.
It is not known whether the borrower has been arrested yet, or whether the case will reach a court. The National Commercial Bank has posted no statement on the case on its website.
More: Libya news in English, every day from The Rio Times.
Frequently Asked Questions
Why were the National Commercial Bank officials detained?
Libya’s Public Prosecution says they approved a €1.15 million (about US$1.29 million) credit facility that broke lending rules and lacked collateral. It says the deal produced illicit gain.
How many people did prosecutors order held?
Six bank officials were ordered into pretrial detention. Prosecutors also ordered the arrest of the person who received the credit.
Have the officials been convicted?
No. Pretrial detention keeps suspects in custody during the investigation. They have not been tried, and they are presumed innocent.
What is the National Commercial Bank?
It is a Libyan bank that says it has operated for more than 55 years and runs more than 90 branches. The case involves its branches department in Tripoli and its Al-Mina branch.
Why does this matter to US readers?
Libya earns almost all its state revenue from oil, and that money moves through its banks. US firms entering Libya under new deals would rely on those banks for payments and credit.
Sources: Al Wasat (Arabic), 11 October 2026; Libya Herald, 11 October 2026; Libya Observer, North Africa Bank case, 10 October 2026; Libya Observer, Jufra case, 11 October 2026; Libya Observer, Waha Oil case, 11 October 2026; Libya Observer, Central Bank IT officials, 16 July 2026; Libya Herald, Central Bank of Libya figures, 9 October 2026; Libya Observer, Libya-US telecoms framework, 8 October 2026; Libya Observer, Presidential Council invitation, 8 October 2026; National Commercial Bank, 12 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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