ISTANBUL, May 10 (Reuters) - Libya is seeking advice from the European Bank for Reconstruction and Development, a source close to the discussions said on Friday, as the country tries to rebuild its institutions after decades of dictatorship.
Such technical cooperation is a relatively low-level relationship with the bank but countries such as Egypt have gone on from this status to become full-scale recipients of investment from the bank - originally set up to help Europe's ex-communist states.
The EBRD is holding its annual meeting in Istanbul and Turkish Prime Minister Tayyip Erdogan hosted a breakfast on Friday for leaders from the region including Libya's central bank governor Saddek Omar Elkaber, the source who was present at the gathering told Reuters.
"The central bank governor said they have $130 billion in reserves but no state institutions," the source said.
The EBRD recently extended its mandate to the North African and Middle East countries of Egypt, Jordan, Morocco and Tunisia.
Unlike other countries that went through Arab Spring uprisings, Libya is rich because of its oil reserves and accumulated oil earnings, which has helped its economy rebound.
But nearly two years after dictator Muammar Gaddafi was overthrown, the cabinet and Libya's official armed forces are so weak that swathes of the oil-producing desert country remain outside central government control.
(Reporting by Carolyn Cohn; Editing by Ruth Pitchford)
((carolyn.cohn@reuters.com)(44 207 542 6320)(Reuters Messaging: carolyn.cohn.thomsonreuters.com@reuters.net))
Keywords: EBRD ECONOMY/LIBYA
