Libya's Rival Legislatures Sign First Unified Budget in 13 Years
Key Takeaways
- Eastern and Western legislatures approved the unified budget for the first time in 13 years.
- Central Bank of Libya confirmed both chambers endorsed the unified budget.
- The agreement was US-mediated, aiming to stabilize finances nationwide.
Historic Budget Unification
Libya's rival eastern and western legislative bodies signed a U.S.-mediated agreement to unify public spending for the first time in over 13 years.
“Libya's rival eastern and western legislative bodies have signed a US-mediated agreement to unify public spending across the divided country for the first time in over a decade, the central bank said Saturday”
The Central Bank of Libya described the deal as the first consensus on unified spending across Libya in over 13 years.
The agreement was signed by Issa Al-Arebi and Abdul Jalil Al-Shawish.
Central Bank Governor Naji Issa said this is a clear declaration that Libya is capable of overcoming its differences.
Despite generating $22 billion in oil revenues last year, Libya faces a foreign currency deficit of $9 billion.
The central bank commended the positive role of the United States in supporting mediation efforts.
Economic Challenges and Reforms
The unified budget allocates substantial sums for salaries, operational expenses, and the National Oil Corporation.
The deal is viewed as an initial step toward closing the chapter on parallel spending estimated at about 59 billion dinars in 2024.
Economist Suleiman Al-Shahoumi warned that the core issue lies in implementation.
Economic journalist Mohamed Al-Sarit stated that the unified budget is a necessary step but insufficient.
The central bank affirmed its full commitment to principles of disclosure and transparency.
Political Dynamics and Regional Implications
Political divisions remain entrenched despite the breakthrough.
“Libya’s two rival legislative bodies have signed the divided country’s first unified state budget in more than a decade, the central bank said on Saturday”
Forces loyal to Khalifa Haftar maintain control over large parts of the country.
The timing of the agreement underscores Libya's growing importance in global energy markets.
Libya holds Africa's largest oil reserves at around 48.4 billion barrels.
Dbeibah announced the resumption of the Group of Five for the Sahel and Sahara to operate from Tripoli.
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