The Efficiency of the Lending Policy of the Agricultural Bank in Libya During the Period 1990-2011

Abstract

The purpose of this research is to study the efficiency of the loans policy of the Agricultural Bank in Libya during the period 1990-2011 and to achieve this goal, the study has known agricultural development loans by using the general equations of the time trend of the values of agricultural loans and the numbers that benefited from various loans. The results showed that the average growth rate of medium-term loans was 11.1%, followed by long-term loans of 10.2%, and thirdly, short-term loans of 2%. Also, the value of long-term loans has occupied first place in arithmetic mean, which is estimated at 42.2 million dinars, and then followed by short-term loans, which are estimated at 18.3 million dinars. The repayment rate of agricultural loans granted in different periods reached a maximum of 139 million dinars in 1992, and they were accumulations of collecting the agricultural subsidy values of the past years. Moreover, the lowest reimbursement rate was in 2011, around 4.4 million dinars. Finally, this study has achieved several recommendations; one of them is that it is necessary to improve the enabling efficiency of loans to ensure continuity and sustainability of the bank. Also, it is important to continuously evaluate the bank's performance and pay strong attention to collect rates of various loans, which support the bank's financial position.