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Libyan parties agree on two-month work on unified national budget and solution to banking crisis
This week, the government made two important decisions that will have a positive impact on the economy and create momentum for unifying the country’s financial institutions.
On February 3, 2021, the Council of Ministers announced a two-month interim budget for 2021. This is the first time that Libya has had a unified national budget since 2014.
exist United Nations Support Mission in Libya (UNSMIL)And with the support of international financial institutions and the Berlin Process Economic Working Group, it brought together relevant parties from both sides to work together to reach an agreement.
The parties agreed to prepare a budget for two months instead of a full year so that the newly formed unified executive committee can decide on the full budget for 2021.
The budget is determined by the Board of Directors. Central Bank of Libya (CBL) On February 1, it was decided to provide interest-free loans to Libya’s commercial banks to reduce the backlog of outstanding cheques. The decision will not address the root causes of the so-called credit crunch, but it will reduce pressure on the banking system.
These two reforms, along with the recent unification of the exchange rate of the national currency, the restoration of the Central Bank of Libya’s Board of Directors, and progress in conducting financial reviews of the Central Bank of Libya and the Libyan Investment Authority, are important components of the reforms needed to regularize the management of Libya’s oil revenues.
UNSMIL hopes that, with the new unity administration’s renewed commitment to national interests and the restoration of sovereignty, Libya will move closer to equitably managing its oil resources for the benefit of all Libyan people.
(Source: United Nations)
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