The situation in Libya has become more complex, as coalition forces, led by the UK, France and the US, initiated attacks on Libya on Saturday night.

This could perhaps be the start of the end for Col Gaddafi, but until that actually occurs the hardship being endured by Maltese entrepreneurs with business interests in Libya is bound to continue until the civil war ends and a return to any semblance of normality occurs.

Pending payments amounting to around e5 million, together with an unspecified amount of investments in the form of works in progress, shipments, outstanding orders and outstanding projects, are the main concerns relayed to Malta Enterprise and the Malta Chamber of Commerce, Enterprise and Industry by businesses operating in Libya.

Various efforts have, in fact, been undertaken to assist more than 35 companies which have been affected by the Libyan crisis, with government, Malta Enterprise, the Malta Chamber of Commerce, Enterprise and Industry and the GRTU seeking to facilitate matters in the best way possible in the circumstances.

The situation was also discussed between the Prime Minister and the social partners at MCESD, and the economic implications for Malta discussed. Various suggestions have also been made with regards to assistance to companies primarily to save the jobs of the persons who have been recalled from Libya for safety reasons last month.

Nevertheless, the latest call by the GRTU for government to guarantee outstanding loans by Maltese entrepreneurs to finance their business in Libya has been understandably rejected. The GRTU mentioned the guarantee issued by government to safeguard bank deposits during the financial crisis and the assistance given to companies that had threatened to close down during the recession of the past two years as examples. These are, without doubt, perfectly reasonable cases in point where government intervention was crucial to save jobs and assist a handful of companies which were in difficulty due to the downturn in orders and help them invest to turn around their fortunes.

This country is constituted of entrepreneurial people who can identify and grasp business opportunities and develop these ventures into profit-making enterprises. However, this particular case is very delicate due to the close proximity with Libya and business ties which have existed for many years. Nevertheless, guaranteeing loans for companies which have invested in Libya is not such a straightforward affair. To start with, investing taxpayers’ money in companies operating in Malta is a much more welcome proposition. The high-risk nature of any form of investment in the north African country has been widely known, and thus companies should have been prudent and invested in an insurance policy to protect their assets against the high risks associated with their venture. On the other hand, any government intervention should only be in cases where assistance is absolutely necessary to protect jobs and perhaps even facilitate investment where possible to create more jobs.