The debt to the state was owed for export guarantees provided by Cyprus, while the business debts relate to trade with Libya, involving a range of products including shoes and clothing and construction services. Libya owed money to a total of 23 local firms and businesses but ten of those no longer exist, leaving 13. Under a deal made with Libya in 2010, the money was to have been paid by March 15, 2011, when some 50% was handed over to Cyprus and the cabinet at the time approved a mechanism for the distribution of the money to the local firms in question.

Only months later in 2011, Libya leader Muammar al-Gaddafi was ousted in the civil war, throwing the whole issue into limbo. Recent reports said the foreign ministry was making all the necessary efforts to recover the remaining amount from the new Libyan government.

Source: Cyprus Mail