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Libya Bank Lending Paralyzed Amid Interest Ban: Islamic Finance

Ali Gumma finally saved enough money to buy a plot of land near Tripoli and was planning to build a family home when he hit a brick wall: He couldn’t find a Libyan bank willing to lend him the money.

“I can’t afford to build it on my own,” the 52-year-old university professor said in an interview in the capital. “Traditional banks are barred from offering loans because they aren’t Islamic but no alternatives have been introduced.”