Decision No. 330 of 2022 Approving Debt Settlement with Republic of Congo

The Council of Ministers approved a debt settlement agreement with the Republic of Congo regarding a USD 24.1 million outstanding loan from 1978. Libya waived USD 12.1 million in debt plus interest and penalties, while Congo agreed to cancel EUR 3.56 million in tax and social security debts owed by LAICO Brazzaville, Libya's state-owned investment company operating in Congo.

This decision signals Libya's willingness to restructure legacy sovereign debts through pragmatic negotiation, prioritizing operational relief for state-owned enterprises over debt recovery. For foreign investors, the specific benefit to LAICO Brazzaville—cancellation of tax and social security arrears—demonstrates that Libya will leverage diplomatic channels to protect the commercial interests of government-linked entities operating abroad. Companies partnering with or competing against Libyan SOEs in African markets should note this level of state support.