With $62 Billion In Overseas Deposits By Libyan Residents, How Long Before The MENA Depositor Run

Tyler Durden's picture

Yesterday we reported that as part of the brave US crackdown on Libya, up to $30 billion in Libyan assets have been frozen (and as noted yesterday, we still look forward to finding out just which US banks were the biggest recipients of Libyan recycled capital, whose source was naturally mostly the US and Europe... and actually European too, but more on that in a second). According to the latest BIS deposit data, however, this is merely half of the deposits held by all Libyan residents aborad as of September 2010. Incidentally this makes Libya the third "richest" country in MENA when looked at the amount of foreign deposits, just behind Saudi Arabia with $156 billion and the UAE with $75 billion (although both of these countries have massively more assets compared to Libya's nominal $1.6 billion). Bloomberg digs deeper into the number: "Most deposits were from banks in Libya, including branches of foreign institutions, while $8.2 billion was from non-bank Libyan residents, according to quarterly banking statistics compiled by the BIS and last released on Jan. 28." And now that Libya's seized assets are in the no man's land of international judicial limbo, and Libyan depositors likely to start a wholesale scramble to recoup whatever capital is still unlocked, how long before every nation in the revolutionary region decided to do the prudent thing and convert their deposits into tangible assets before some politicians decides to do the same asset freeze with their money. Lastly, just which European banks are the recipients of these hundreds of billions in deposits between the region's three biggest oil exporters?

From Bloomberg:

The BIS statistics are based on reports from 43 countries, including most developed nations and offshore centers such as the Cayman Islands, the Netherlands Antilles and the British Channel Islands. The figures don’t cover direct investments by Libyans in assets overseas.

The European Union yesterday imposed an arms embargo and other sanctions including an asset freeze, and the U.S. said it has frozen $30 billion in Libyan assets. Switzerland on Feb. 24 froze the assets of Libyan leader Muammar Qaddafi and his entourage for three years to avoid the possible “misappropriation” of the funds.

And the relevant page from the full report:

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HoofHearted's picture

How many Libyans read ZH? That will tell you who is ahead of the curve and who will be withdrawing fiat to trade it for something useful...gold, silver, guns, ammo, food, etc.

velobabe's picture

who farted, don't forget hookers and hoes†

caconhma's picture

How stupid can one be by keeping money in American banks?

America always was/is an outlaw respecting neither domestic nor international laws.

But of course, we have the Constitution. But excuse me, who gives a shit about it?

Finally, the latest Obama & Clinton diplomacy will definitely kill US$ as the reserve currency. China rulers, are you listening?


Now, it is perfectly clear why gold always was and will be "the store of value". Fortunately, you cannot eat it.

netnil's picture

check with Mr Drysdale, unscrupulous banker to the Beverly Hillbillies

sabra1's picture

pussycat pussycat where have you went, down to the commerce, for 5%!

Pants McPants's picture

Prudent citizens will immediately convert intangible assets into tangible assets.  You can bet the political "leaders" have already done so - Egypt was the test case.

luk427's picture

And Gold is only up $14.

Oh regional Indian's picture

Banking black hole, singularity moment is also approaching. 

I think this time the run will be global, quickly. All thsi globalization/black money/tax haven has created a mess of both accountability and deliverability. 

Lots of hiders are going to have their hides handed to them

it's happening in India with revelations from the swiss.



falak pema's picture

They have very rich camels in Libya. Only explanation. Every camel will get 600 000 USD from their sovereign fund. Guaranteed by the TBTF banks who hold their accounts. Who wants to marry a libyan camel? Only criteria is : Female, less than 30, blond with blue eyes. No objection to being member of harem. Marrying white caucasian female  allows camel to keep his hard earned share. Or else it gets snapped up eventually by western Banksters/politicians. It's a win-win deal all round. Only possible in the next week before fund collapses under camel stampede/ Bankster rip-off. All candidates must contact ZH to be sure of bona fide treatment. Repeat, do not contact Lloyd Blankfein. Under no circumstances.

gwar5's picture

Muammar has it stashed all over the place. The longer he fights the more time he has to loot. Mubarack did the same thing. They all do.

Muammar won't make it but if his sons get to Venezuela with gold they can try a comeback down the line like the Shah's kids. One of his boys is a London School of Economics grad. They didn't say what his GPA was. 

YHC-FTSE's picture

Heard today that LSE students are demanding the college to revoke his "Stolen" PhD. Haven't read Saif's thesis so can't comment on his academic work, but we all know that the LSE was promised around £1.5m from the GICDF (The Gaddafi International Charity and Development Foundation). 

americanspirit's picture

Think of all those Colombians and others who are holding so many physical FRNs. What to do, what to do?

WyMi's picture

Why stop at Libyan accounts. Isn't it open season on muslims/arabs/unionists/taxpayers. The invisible hand is grasping. I just hope it will be used constructively in inflating something to bubblous proportions. Something that God would be proud of.

Fíréan's picture

To give a perspective  as of last year Libyan institutions held 7.6% of UniCredit  shares, Italy's largest bank. Also are large holder of Italain government bonds. Libyan institutions hold shares in many major world companies. This is not just a matter of citizens and their cash in the bank.

disabledvet's picture

and there's your answer.

michigan independant's picture

The term derives from the Latin fiat, meaning "let it be done",

"And now that Libya's seized assets are in the no man's land of international judicial limbo."

Well lets hope water, wheat and intrinsic value appeals now. Intrinsic value is an ethical and philosophic property. CD can expound the finer points. The Baker and Blacksmith have very short confrontations.  


PulauHantu29's picture

Is that why I read people over there are buying kilogram bars of solid gold?

PulauHantu29's picture

Is that why I read people over there are buying kilogram bars of solid gold?

disabledvet's picture

Goodbye Italy.  Hello France apparently.  I have no idea what "we the Americans" will do.  We're crazy.  We are of course "over there" as well.  Who knew a sandbox could be worth so much?