Malta and Libya yesterday ratified an Agreement on the Encouragement, Guarantee and Protection of Investment. The exchange of instruments of ratification took place at the Ministry of Foreign Affairs in the presence of Foreign Minister Michael Frendo, Ms Cecilia Attard Pirotta, permanent secretary at the Ministry of Foreign Affairs and Libya’s Ambassador to Malta Dr Saad Elshlmani, signed and exchanged the instruments of ratification.

“This is a further step to foster and enhance economic cooperation between the Malta and Libya, particularly investment by Maltese and Libyan individuals or enterprises in Libya and Malta respectively. We recognise that the reciprocal encouragement, guarantee and protection of such investment is indeed an incentive to boost economic cooperation between Malta and Libya,” commented Foreign Minister Michael Frendo.

Ambassador Elshlmani confirmed that “this agreement further strengthens the investment environment in Libya and Malta for each other’s business persons. It is another sign of our excellent and dynamic relations”.

The agreement states that Malta and Libya shall encourage and create favourable conditions for investors from the two countries to make investments in the respective territories and to admit such investments in accordance with their respective laws.

Among the measures listed, the agreement provides that investments made by the Maltese and Libyan investors in the respective Libyan and Maltese territories shall not be subject to any expropriation, nationalisation or any other measures of dispossession, unless the measures are taken in the public interest and under due process of law, in an non discriminatory manner and accompanied by provisions for the payment of adequate and effective compensation that represents the real market value of the expropriated investment on the date on which the measure was taken or should the case arise, on the day before the date on which the impending measure became public knowledge.

The Investment Guarantee Agreement also applies to investments made in the respective countries by respective individuals or business entities prior to the entry into force of this agreement.

The agreement ratified today also provides mechanisms for settlement of disputes between the parties, should the case arise. The agreement enters into force one month from this date.