The ABC Group has a policy of rigorously complying with all applicable sanctions and has conducted, and will continue to conduct, all its dealings in compliance with all applicable laws and regulations.
The Central Bank of Libya owns 59.3 percent of ABC and the Kuwait Investment Authority has a 29.6 percent stake in the bank.
The Central Bank of Bahrain regulates ABC as a wholesale conventional bank. ABC was established under the laws of Bahrain and its shares are listed on the Bahrain Bourse.
ABC’s announcement follows the issuing by the president of the US, an executive order under the International Emergency Economic Powers Act on Feb. 25, 2011 (the Executive Order).
The Executive Order blocks the assets (to the extent that such assets are in the US or are in the possession or control of US persons) of various individuals and entities in Libya and of entities controlled by them.
The US Department of the Treasury issued General License No 1 on Feb. 25, 2011 in connection with the Executive Order (the General License).
The General License provides that “all transactions are authorized with financial institutions owned or controlled by the government of Libya that are organized under the laws of a country other than Libya”.
The UN Security Council recently passed a resolution (Resolution 1970), which calls upon UN member states to impose an asset freeze on various Libyan persons and, consequently, it is expected that a large number of jurisdictions will implement asset freezes in response to Resolution 1970.
ABC’s total assets as of Dec. 31, 2010 stood at $28,105 million. Short-term placements with banks and financial institutions increased to maintain liquidity, which remains comfortable with liquid assets to deposits ratio at the year-end of 72 percent compared to 71 percent in the previous year.
Shareholders’ equity at Dec. 31, 2010 stood at $3,428 million compared to $2,191 million the previous year, boosted by the $1,110 million share capital increase in the first quarter of 2010.
ABC Group’s capital adequacy ratio at 2010 year-end was very strong at 23.1 percent, predominantly Tier 1, which totaled 18.4 percent.