Elkaber said the government was working on creating an investor-friendly environment in Libya after it emerged in October from a nine-month civil war that ended the rule of dictator Muammar Qaddafi.
The government 2012's budget would register a 7 billion dinar ($5.6 billion) deficit, he said, adding that comparable data for last year was not available.
"It's not time for investment (overseas)," ElKaber said from his office in Tripoli.
"There is a decision by the council of ministers not to contribute — I mean increase any shares, fresh cash into foreign investments."
"Libya is going through difficult conditions, including the reconstruction of damaged cities which will need (financial) assets," he said.
Elkaber said the Central Bank of Libya and the Libyan Investment Authority, the sovereign wealth fund, had no plans to increase their shares in UniCredit after the bank made a 7.5-billion euro ($9.7 billion) cash call last month.
"The number of our shares has shrunk," he said.
"We're talking about the central bank's percentage shrinking from 4.9 percent to 2.8 percent after the percentage has been diluted."
He said the Libyan government was working on creating the legal framework and necessary infrastructure to attract foreign investors, but said issues such as whether there would be a need to have a local partner were still being discussed.
Libyan investment vehicles would turn their attention to Libya after being focused mainly abroad, he said.
"Part of the former regime's approach, which was used to serve its personal interests, was to direct all investments outside Libya," he said.
"And it practically prevented investments whether they were foreign investments or investments by the Libya Investment Authority (LIA). All of it was outside Libya. Why is that?"
Asked whether the government would invest in Libya, he said: "Why not if the return is better, and I believe so, the future will be bright for investment in Libya."
"Will be creating an environment that attracts investments, especially when it comes to the banking sector."
Elkaber said the lifting of UN sanctions on the central bank's assets had unfrozen 95 percent of its assets, estimated at nearly $100 billion.
The sanctions had originally frozen $170 billion in assets, he said, adding that $70 billion were the investments of the LIA and other investment vehicles, including government-owned banks such as Libyan Foreign Bank.
"Now about 95 percent of the central bank's assets have been unfrozen and they're now being managed," he said. "The full unfreezing of assets doesn't mean bringing the money to Libya but being able to manage the assets for Libya."
He said some countries that still refuse to unfreeze Libyan assets wanted to make sure the parties they release the assets to were authorized by the Libyan government.
He did not name any country, but stressed it was a matter of time before the assets were released.
About $15 billion of central bank assets were in bonds, mostly US and European and some Japanese debt, he said, but did not elaborate.
"Fixed income products are of course all AAA-rated with a maturity of three to five years, but it doesn't represent a major percentage, the majority of the assets are liquid," he said.
On the LIA, which has nearly $65 billion in assets and stakes in British publisher Pearson and Juventus Football Club in Italy, Elkaber said a new board of trustees had appointed a caretaker board of directors chaired by the minister of finance this week. A permanent board would be named within weeks, which would then appoint a chief executive officer.
A team of experts appointed by the National Transitional Council a few months ago is currently reviewing the LIA's investments.
As the government needs billions of dollars to fund reconstruction efforts and pay salaries and compensations, it could tap into the fund, as its acting chief executive suggested in November.
"We first need to know what's the condition of the authority and its investments," Elkaber said.
"We need to audit these investments to see what are the problems and then decide the future of Libyan investments abroad through the board of directors and board of trustees."
He said he expected the government's 2012 budget, which he hoped would be drafted "soon", would register a 7 billion dinar deficit, adding the government was considering either to issue bonds or tap into its foreign reserves to cover the deficit.
"The two solutions are under study, but there's no decision yet," he said.
The deputy central bank governor told Reuters last month the government was likely to resort to issuing debt domestically to cover the deficit in 2012.
Although the budget has not been finalized the cabinet has allowed government ministries to operate on monthly budgets this month.
