Rebus Libya: UNICREDIT 4% shares disputed between Tobruk and Tripoli govts

Rebus Libya: UNICREDIT 4,2% shares disputed between Tobruk and Tripoli govts. These shares  are divided between Central Bank and LIA (Libya Investments Authority or sovereign wealth fund). Serraj PM has recently changed LIA summits

"We have an excellent relationship with Libya," and "I do not think that will increase its share "because now they have other priorities." Thus he spoke the president of Unicredit, Giuseppe Vita on May 14, 2015 on the sidelines of the bank. Vita was just back from a meeting with the leaders of CBL and LIA, which are both shareholders with respectively 2.95% and 1.27% (total 4,22%) of UNICREDIT capital.

The problem is priorities - Vita said about two years ago - which have changed for both Libya, which has returned on the brink of civil war and has to deal with Isis 'at home', while Unicredit launches a capital big increase for 13 billion €. Libya should pay pro-rata almost 540 million €.

What will Libyans do? Will they stay in the capital of Italian banks joining the increase pro rata? Some observers interviewed by the newspaper bet on the participation of CBL whilst still see LIA as a great unknown move. "Already making a decision will not be easy because the instability of the country is reflected in that of the fund command chairs," says a source, noting that the other party is not unique.

On a side there are the representatives of Tobruk Government, on other side Fayez Al Serraj, PM of Libyan national unity government which took office last March in Tripoli.

In August 2016 Serraj appointed an "interim steering committee" for LIA, with President Ali Mahmoud Hassan instead Bouhadi, arrested a week before. Bouhadi, who operated from Malta, was regarded as LIA legitimate representative as appointed by the Government of Tobruk - the only one recognized by the UN before the executive Serraj - although the fund guide was challenged in London court by 'former number one’ Abdulmagid Breish, commissioned by the Libyan government in Tripoli.

In December Serraj daughter married a LIA executive in London with a wedding in style. However, both sides want to control the fund, because it is the only source of cash and will finance projects for the reconstruction of Libya when embargo will be lifted.

"Thanks to Italy for his courageous forerunner role in the stabilization of Libya," the Libyan PM repeated several times, in an interview with newspaper Republic on 24 January from his residence in Tripoli where Italy has recently reopened its embassy. In mid-October the president of LIA, Hassan, had a meeting in Rome with Italian Minister of the Treasury, PierCarlo Padoan and the next day he ended his Italian mission in Milan where he met Unicredit CEO, Jean Pierre Mustier. Until a few years ago LIA could rely on a vice president in Unicredit board. Tomorrow, who knows.