LIA discusses reinvestment of frozen funds in Germany amidst Sentry report disagreement
via Libya Herald7 min read
The Chairman of the Libyan Investment Authority, Ali Mahmoud, met with Germany's Deputy Permanent Representative to the United Nations to discuss the reinvestment and management of LIA's assets in Germany. The LIA is seeking support for licensing procedures to reinvest its cash reserves in German banks, emphasizing it is not requesting a lift of the asset freeze but rather the ability to manage and invest uninvested cash within the existing freeze framework. This aims to achieve sustainable returns and protect the Libyan people's interests. The LIA noted it has previously reinvested portions of its cash reserves in German markets and financial institutions, maintaining a diversified investment portfolio including energy, bank deposits, and equity investments. However, a March 2026 report by The Sentry Organisation presented a contrasting view, suggesting the LIA has often made more profit from frozen assets than from those it could freely reinvest. The Sentry's report indicates that while the LIA's total assets were valued at $62.85 billion in 2020, with approximately two-thirds frozen, the LIA can actively manage about half of its total assets, or $30-33 billion, through licenses and unfrozen assets. The report claims the total value of LIA's assets has declined since 2011 and questions the LIA's public narrative of improved accountability, citing mismanagement of billions in unfrozen assets and ineffective navigation of sanctions. The Sentry recommended that the UNSC should
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