Özgür ERKERAssistant General ManagerTreasury and Financial Institutions Division

30 June 2012

Growth in Number (%)

International Assumption 2010 2011 2012e 2013e 2014e

World Growth 4.0 2.9 3.2 3.5 3.7

US Growth 3.0 1.7 2.5 2.0 2.2

EU27 Growth 2.0 1.6 -0.5 1.0 1.5

MENA Growth 4.1 3.3 3.0 4.0 4.5

GCC Growth 4.9 6.6 4.3 4.9 4.7

Turkey Growth 9.2 8.5 2.8 5.2 5.0

World Trade Growth 14.1 6.0 4.0 5.5 6.0

Oil Price 79.6 111 114 105 108

Source: A&T Bank Research

Global growth will gradually recover in 2012 from the

trough in 2011Q4 and will be between 3%-3,5% in 2012.

Risks to the global growth outlook are strongly tilted to

the downside as the European crisis continues.

Emerging economies are on track for a soft landing.

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MENAMiddle East and North Africa regional forecast

Source: IMF

4

Libya at a glance..

Key Indicators 2011 2012 2013 2014

Real GDP growth (%) -30.9 28.8 12.6 8.6

Consumer Price Inflation (av,%) 15.9 2.8 2.6 2.5

Budget Balance (% of GDP) -7.0 11.2 8.0 4.2

Current Account Balance (% of GDP) 8.5 36.4 31.3 27.2

Exchange Rate LD/USD 1.22 1.25 1.26 1.28

Exchange Rate LD/EUR 1.7 1.63 1.62 1.6

Economic Outlook

Source: Economist Intelligence Unit - A&T Bank Research

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Libya at a glance..

POLICY TREND

Interest Rates 2010 2011 2012 2013

Lending interest rate (av; %) 6.0 6.0 6.5 6.5 

Deposit interest rate (av; %) 2.5 3.0 3.5 3.5 

Money market interest rate (av; %) 5.0 5.0 5.5 5.5 

Money market spread over US T-bills 486 495 544 547 

Real money market rate 2.4 -10.4 2.6 8.7 

Source: Economist Intelligence Unit - A&T Bank Research

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Libya at a glance..

FISCAL OUTLOOK

Fiscal Indicators (% of GDP) 2010 2011 2012 2013 2014

General Government Expenditure 52.5 37.6 41 46.2 51.5

General Government Revenue 59.3 30.6 52.1 54.2 55.7

General Government Budget Balance 6.7 -7.0 11.2 8.0 4.2

General Government Debt 3.2 4.2 2 2.6 2.4Source: Economist Intelligence Unit - A&T Bank Research

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Libya at a glance..

MONETARY POLICY

Monetary Indicators 2010 211 2012 2013 2014

Exchange rate LD/USD (av) 1.27 1.22 1.25 1.26 1.28

Exchange rate LD/USD (year-end) 1.25 1.25 1.26 1.27 1.29

Exchange rate LD/EUR(av) 1.68 1.7 1.63 1.63 1.62

Exchange rate LD/EUR (year-end) 1.68 1.66 1.63 1.63 1.6

Purchasing power parity LD/USD (av) 0.84 0.8 1.01 0.92 0.89

Money supply (M2) growth (%) -0.6 15.5 -4.7 21.8 23.9

Domestic credit growth (%) 11 -15 5 22 24

Lending rate (av; %) 6 6 6.5 6.5 6

Deposit rate (av; %) 2.5 3 3.5 3.5 3

Money market rate (av; %) 5 5 5.5 5.5 5.2Source: Economist Intelligence Unit - A&T Bank Research

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Libya at a glance..

International Relations

Foreign Direct Investment (USD m) 2010 2011 2012 2013 2014

Inward direct investment 1.784 89 892 2.676 5.352

Inward direct investment (% of GDP) 2.2 0.2 0.9 2.6 5Inward direct investment (% of gross fixed invest.) 17.3 5.3 22.4 42.6 70

Outward direct investment -2.772 -136 -272 -817 -1.389

Net foreign direct investment -938 -47 620 1.859 3.964

Stock of foreign direct investment 16.041 16.13 17.022 19.698 25.05Stock of foreign direct investment per head (USD) 2.451 2.711 2.803 3.165 3.946Stock of foreign direct investment (% of GDP) 19.6 27.2 17.5 19.5 23.6

Memorandum itemsShare of world inward direct investment flows (%) 0.2 0.01 0.07 0.19 0.35Share of world inward direct investment stock (%) 0.1 0.09 0.1 0.11 0.14

Source: Economist Intelligence Unit - A&T Bank Research

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Libya at a glance..

Foreign TradeExternal trade

2007 2008 2009 2010Main destinations of exports (% share)Italy 40.1 38.1 37 27.2France 6.3 7.4 8.2 13.7China 3.2 3.8 8.2 9.7Spain 7.5 6.9 7.8 9.6Main origins of imports (% share)Italy 13.9 19.7 17 14.5China 5.4 8.2 10 9.2Turkey 4 5.5 9 8.7South Korea 2.5 4.2 6.2 6.3Principal exports (% share)Hydrocarbons products (% share) 97.5 98 69.7 82.8Volume and prices (% change)Export volume of goods 6.3 -7 -12 0.9Import volume of goods 9 8.2 4.5 9.3Export prices 11.2 34.3 -36.7 28.7Import prices 8.2 18.6 -3.5 5.6

Source: Economist Intelligence Unit - A&T Bank Research

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Libya at a glance..

Country Strong Points

Its geographical location

Considerable natural wealth

Inflows of money associated with oil

The force of private consumption and public investment

Opening up and liberalization policies  which favor private investment and should revitalize Libya's economy

Low foreign debt

A dynamic demography

  

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Libya at a glance..

Country Weak Points

The State is omnipresent in the economy

Extremely dependent on oil resources

An inefficient administration which hinders the development of the private sector

Lack of credit,  control of price and changes, constraining economic growth

Imports restrictions

A high unemployment rate

Finally, even if Libya's rehabilitation in the international community has given confidence to investors, structural reforms remain essential

  

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Trade Relationship between Libya and Turkey

19961997

19981999

20002001

20022003

20042005

20062007

20082009

20102011

April 2012

$0

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

$1,400,000,000

$1,600,000,000

$1,800,000,000

$2,000,000,000Total Exports Total Imports

Total Export& Import Between Libya and Turkey since 1996

Libya is the seventh largest trade partner of Turkey in Africa by 2011

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Exports

Turkish goods exports to Libya in 2011 decreased to 747 million USD, from 1.9 billion USD in 2010.

Animal and vegetable oils, fats and waxes (157 million USD) Articles of apparel and clothing accessories (70 million USD) Iron - steel, (55 million USD)Manufactures of metals (48 million USD) Textile yarn, fabrics, made-up articles (46 million USD)

Imports

Turkish goods imports from Libya totaled 139 million USD in 2011, down 67.1% (425 million USD) from 2010, and decreased 83% from 2001.

Petroleum, petroleum products and related materials (55 million USD) plastics in primary forms (26 million USD)organic chemicals (19 million USD) manufactures of metals (9 million USD)iron and steel (5 million USD)

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JANUARY FEBRUARY MARCH APRIL$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,0002009 2010 2011 2012

First 4 months Comparision of Export to Libya

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A&T Bank, with 35 years of established history originally operated as a joint venture between

•Libyan Foreign Bank (62.37%), •Turkiye İs Bank A.S. (20.58%), •T.C. Ziraat Bank A.S. (15.43%) •Kuwait Investment Co (1.62%).

From the outset trade finance was a strong feature of the local and international business of the A&T Bank,

an expertise that has been recognized throughout its history. The role conceived for A&T Bank

was unique for relations with Turkey in Libya.

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A&T Bank by Volumes of Trade Finance Products in Libya

Trade volumes by products with Libya can be viewed in below tables.

LETTER OF CREDITS 2009 2010 2011JAN-MAY

2012EXPORT LCs RECEIVED FROM LIBYA BY A&T BANK

$1.162.430.649

$1.138.114.344

$527.106.174

$349.174.209

IMPORT LCs ISSUED TO LIBYA BY A&T BANK $3.275.796 $21.246.000 -

$244.300.000*

 LETTER OF GUARANTEES ISSUED BY A&T BANK AS OF MAY 2012

THE LETTER OF GUARANTEES ISSUED TO LIBYA THROUGH OUR SOURCES $108.328.700

THE LETTER OF GUARANTEES ISSUED TO LIBYA THROUGH COUNTER GUARANTEE $448.065.190GRAND TOTAL

$556.393.890

THANK YOU FOR YOUR ATTENTION