Besides solution to payment issues, barter system can offer new market of $40B to Turkish businesses in Libya, says head of business council
A top Turkish trade organization proposed a barter mechanism on Wednesday to resolve the nonpayment of $4 billion to Turkish businesses that completed projects in Libya but did not get paid.
“In addition to being a solution to the struggling payment mechanism in Libya, the barter system can offer a new market of $40 billion to Turkish businesses,” said Murtaza Karanfil, chairman of the Turkiye-Libya Council of the Foreign Economic Relations Board of Turkiye (DEIK).
In a statement, Karanfil said the $4 billion that Turkish businesses have not yet received in exchange for projects carried out in Libya prior to 2011.
He underlined that the payment mechanism, which is now working with difficulties due to the political instability in Libya, can only be solved through the barter method.
Underlining that the global energy transformation effort to fight climate change would have a negative effect on oil-dependent economies such as Libya, Karanfil said that if Libya does not take action in the five to 10 years, it have to “grapple with an economic downturn.”
“We must both accept and explain to the Libyans that the barter system is the best step that can save Libya from being in such a situation,”he added.