Gaddafi owes USD 716 million to Greek Companies

Posted by in Economy

Despite Muammar Gaddafi’s enormous private property, Libya owes more than USD 700mn to Greek companies that have been operating in the Northern African country.  

Some of the outstanding debts, which amount to USD 716.2mn (EUR 520.4mn), are pending since the 1980s, mainly to Greek constructors. 

The issue was discussed during a joint ministerial committee between Greece and Libya in Tripoli last September, but failed to provide any positive outcome. Now the companies are worried that the debts won’t be paid off, given the unrest in the region.

The repayment of the major 1980s projects are still due to ETEP, operating in Libya as Tageco. According to sources, it had agreed with Gaddafi to receive oil in repayment of the debt. 

Libya owes OTE EUR2.2mn, according to Foreign Ministry’s official data, while the issue of liquidation of the former Olympic Airways Office in Benghazi is pending with the returning of the company’s cash reserves.

In the Memorandum of Understanding, signed in 1999 by Libya and Greece, there are 13 cases of Greek technical and commercial companies, including Sikelis, EKTE ATE and Neodomi.

Moreover, since the beginning of an intensive reconstruction program in 1980s, Libya has outstanding debts to J&P Overseas, Archimides, Chalkida Cement, Metalerga and more, while J&P Avax, Intracom, Maritech and Hellenic Petroleum participated in the restructuring program in 2006.

Source: Economic Portal Capital.gr
Of course, the Greek State owes to Greek companies and supplies some million euros too :)