Libya's Central Bank hints at rejecting Al-Sirraj's call for unification with eastern parallel bank

Libya's Central Bank hints at rejecting Al-Sirraj's call for unification with eastern parallel bank

November 26, 2017 - 22:50
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Written by: AbdulkaderAssad

The Central Bank of Libya (CBL) has issued a statement expressing bewilderment at the decision of the Head of the Presidential Council Fayez Al-Sirraj to hold a meeting for the two governors of the CBL - in Tripoli and in Al-Bayda - in order to end parallelism as per the articles of the Libyan Political Agreement (LPA).

The CBL in Tripoli aimed its Sunday statement to respond to the calls of Al-Sirraj as it understand that it needs to solve the economic entanglements of the Libyans.

"Such an action should be based on law and specialized committees must be appointed to review the banking works of Tripoli and Al-Bayda CBLs so that each party can take the legal responsibility for their actions." The statement reads.

The CBL also highlighted that lawlessness, lack of state institutions as well as military conflicts since 2014, besides the parallel governments and the shut down of oil terminals coupled with the weak oil revenue from 53.2 billion dollars to 4.8 billion in 2016, while it reached only 10.4 billion dollars by the end of last October, were the factors that led to a deteriorated economy.

"160 billion dollars were lost over closure of oil terminals, leading to a deficit in the budget coupled with national debts over 71 billion dinars by the end of October 2017, in addition to 20 billion dinars spent by the parallel CBL, let alone the continuous deficit in expenditures since 2013 and up until today." The statement reads.

"That is why the Libyan people are suffering. It is shortage of cash, high prices, low value of national currency and many things more are the real reasons behind the suffering of the people." It further explains, adding that people lost trust in the banking system, especially when an inspective authority intervened in its work, hinting at the Audit Bureau.

It also added that Libya needs a full package of reforms including security, political and economic measures that need to be in line with the CBL measures; "because if the CBL acted alone, the measures will be in vain. The issue cannot be resolved in a meeting for the Board of Directors, the real cause should be handled," the CBL remarked.

It also said that it announced earlier a group of reforms for the economic and financial conditions after months of experts' work, saying such efforts will never be implemented unilaterally, but as a matter of a group of bodies that includes authorities and institutions in the country.

It is true that the CBL's statement did not clarify whether or not it accepted Al-Sirraj's meeting invitation, the statement implies a rejection to the invitation, which was accepted by the parallel CBL's governor, Ali Al-Habri.

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