The UN Support Mission in Libya (UNSMIL) has announced that the Libyan parties have agreed on a two-month budget rather than a full year to allow for the newly formed unified executive authority to decide on the full budget for 2021, adding that they have also agreed on addressing banking crisis.
In a statement on Monday, UNSMIL said the agreement on the budget was reached through its good offices, with the support of international financial institutions and the Economic Working Group of the Berlin Process, as they brought together relevant parties from both sides of the country to work out an agreement.
“On 3 February 2021, the Council of Ministers promulgated a two-month interim budget for 2021. This is the first time since 2014, Libya has one unified national budget”. UNSMIL explained.
It indicated that the unification of the budget followed the Board of Directors of the Central Bank of Libya (CBL) decision on 1 February to allocate a no-interest loan to Libyan commercial banks in order to reduce the backlog in uncleared checks.
“This decision will not address the underlying cause of what is known as credit crunch, but it will reduce pressure on the banking system.” UNSMIL reiterated.
It also hoped that with a newly unified executive authority recommitted to working for the country’s national interests and restoring its sovereignty, Libya would be able to move closer to an equitable management of its oil resources for the benefit of all Libyan people.