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Author: LS

ABC Bank CEO in Bahrain Announces Launch of Central Bank of Libya’s Technology Department with Three Key Projects, Including Instant Payment

The CEO of ABC Bank in Bahrain, Sael Al-Waari, stated in an exclusive interview with our source regarding the Innovation and Digital Transformation Forum in financial services that today marks the launch of a significant department at the Central Bank of Libya – the Technology Department – with three projects: Instant Payment, EKYC, and Open Banking. These projects provide an opportunity for all banks to be interconnected.

Al-Waari added that such steps are crucial for the development of banks and digital transformation in Libya.

Al-Huwaij Inaugurates Libya Food Exhibition 2024

Today, Sunday, the Minister of Economy and Trade in the Government of National Unity, Mohamed Al-Huwaij, inaugurated the fifth edition of the Libya Food Exhibition at the Tripoli International Fairgrounds. The exhibition is organized by the International Exhibitions and Conferences Company with the participation of 215 local and international companies.

After the opening, the minister toured the exhibition halls accompanied by the Chairman of the Management Committee of the General Exhibitions Authority, the President of the General Union of Chambers of Commerce, Industry, and Agriculture, the Chairman of the Management Committee of the Chamber of Commerce, Industry, and Agriculture in Tripoli, the Chairman of the Joint Libyan-Egyptian Chamber of Commerce, and several heads of diplomatic missions in Libya.

Approximately 100 local companies and around 115 foreign companies from Egypt, Tunisia, Morocco, Jordan, the UAE, Turkey, Italy, Malta, France, and India are participating in this exhibition, which will continue its activities until next Wednesday. The participating companies specialize in food and plastic industries, manufacturing machinery and equipment, packaging technology, and restaurant and café equipment.

Al-Kabeer and Bengdara Agree on the Continuous and Regular Transfer of Oil Revenues to the Central Bank of Libya

The Governor of the Central Bank of Libya, Seddiq Al-Kabeer, and the Chairman of the Board of the National Oil Corporation, Farhat Bengdara, have agreed on the continuous and regular transfer of oil revenues to the Central Bank.

This agreement was reached during a meeting held today, Sunday, between Al-Kabeer and Bengdara at the headquarters of the Central Bank in Tripoli. The meeting discussed financing methods for the development program and plans to increase production for the National Oil Corporation.

During the meeting, Bengdara praised the support of the Central Bank Governor for the plans of the National Oil Corporation to increase oil and gas production, aiming to support the national economy and boost national income.

Al-Kabeer Discusses with Al-Manfi and Dbeibeh the Role of the Financial Committee in Drafting the General Revenue and Expenditure Estimates for the Year 2024

During today’s Saturday meeting, the Governor of the Central Bank of Libya, Seddiq Al-Kabeer discussed with the President of the Presidential Council, Mohamed Al-Manfi, and the Prime Minister of the National Unity Government, Abdul Hamid Dbeibeh, the status of revenue and public expenditure for the year 2023. They also discussed the role of the financial committee in preparing estimates for the general revenue and expenditure for the year 2024, in the presence of the appointed Minister of Finance, the Minister of State for Cabinet Affairs, and the Director of Banking and Currency Control Department.

The meeting addressed possible measures to rationalize consumer spending, audit the fuel bills supplied for private use, and the consumption of the General Electricity Company of fuel.

The foreign exchange situation during 2023 was discussed, including the reasons for the $5 billion increase in demand. Measures required to control border crossings to reduce the smuggling of goods were also discussed, taking into account existing approvals and their goods in transit, valued at approximately $4 billion or about 20 billion dinars.

A $1.8 Billion Recovery Challenge Needed After Devastating Floods in Libya

An international report released recently sheds light on the severe aftermath of Libya’s deadly flash flood in September, characterizing it as a climate and environmental catastrophe that demands $1.8 billion for reconstruction and recovery efforts.

The flood wreaked havoc in Derna as heavy rainfall from Storm Daniel breached two aging dams, causing extensive destruction in the city and sweeping entire districts into the Mediterranean. The report, jointly produced by the World Bank, United Nations, and European Union, highlights the widespread devastation.

The disaster affected approximately 1.5 million people, constituting 22% of Libya’s population. Shockingly, figures from the U.N. humanitarian agency OCHA reported 4,352 confirmed deaths, with 8,000 individuals still missing. The scale of the tragedy underscores the urgent need for coordinated recovery efforts.

Complications arising from Libya’s political divide, with rival power centers in the east and west since 2014, hampered disaster response efforts. Ongoing disputes between the Tripoli government and eastern authorities added complexity to addressing the aftermath of the catastrophic floods.

The collapse of the dams was attributed to a combination of outdated hydrological information used in their design, poor maintenance, and governance problems during Libya’s prolonged conflict. The report points out these factors as key contributors to the disaster and underscores the need for improved infrastructure management.

Climate change played a significant role, making the rainfall triggered by Storm Daniel up to 50 times more likely and 50% more intense. This underscores the broader challenge of climate-related disasters in the region and the imperative for adaptation strategies.

The report estimates that the physical damages and losses from the flooding accounted for $1.65 billion, equivalent to 3.6% of oil-rich Libya’s gross domestic product in 2022. More than 18,500 houses were destroyed or damaged, impacting 7% of the country’s housing stock.

The “limited accountability and capacity” of Libyan institutions pose significant challenges to the recovery process. Weak coordination between rival authorities is expected to hinder the government’s ability to efficiently channel, manage, disburse, and monitor recovery funds.

Despite calls from the United Nations for Libya’s ruling factions to unite and coordinate a response to the Derna disaster, little progress has been made. The ongoing disputes over voting rules and control of the interim government have also thwarted efforts to resolve Libya’s long-running conflict through elections.

Repsol Resumes Exploration Operations in Libya

Repsol Energy has announced its decision to recommence exploration activities in El-Sharara oil field following the lifting of force majeure by Libya’s National Oil Corporation (NOC), which had led to the shutdown of the field three weeks ago.

Operated by Akakus, a joint venture involving the Libyan National Oil Corporation, Repsol, TotalEnergies, OMV, and Equinor, Al-Sharara stands as one of the largest oilfields in the Murzuq Basin, boasting a production capacity of nearly 300,000 barrels of oil per day. The region’s politically unstable climate has been a significant factor contributing to various production disruptions in the oilfield.

Repsol anticipates that El-Sharara’s output will gradually increase to 260,000 barrels of oil per day in the coming days. The company holds interests in the NC115 and NC186 blocks, strategically positioned 7,000 kilometers south of Tripoli, both containing oil accumulations.

Highlighting its commitment to restarting exploration and production activities in Libya, Repsol plans to initiate drilling in the NC115 and NC186 licenses, with up to six exploration wells scheduled for the current year. The company originally commenced exploration and production activities in Libya during the 1960s, with oil production in block NC115 commencing in 1996 and in NC186 in 2003.

Al-Kabeer Monitors Government Spending for the Year 2024 with Dbeibeh and Al-Manfi

On Thursday, the Governor of the Central Bank of Libya, Seddiq Al-Kabeer, held a meeting with the Prime Minister of the National Unity Government, Abdul Hamid Dbeibeh, the President of the Presidential Council, Mohamed Al-Manfi, the Minister of Transportation, Mohamed Al-Shahoubi, and the Minister of State for Cabinet Affairs, Adel Jumaa, along with the Director of Cash Oversight at the Central Bank, Naji Issa. The meeting focused on government spending for the year 2024.

The meeting discussed the specific regulations for the amounts allocated to support fuel and its derivatives for the benefit of the General Electricity Company or distribution companies, which reached over 40 billion dinars in 2023, putting a strain on the public budget.

Al-Kabeer explained that the balance of documentary credits through commercial banks open to supply foodstuffs amounts to 4 billion dinars. These funds will contribute to providing essential goods during the blessed month of Ramadan. He emphasized the need for the Ministry of Economy, Trade, and the Municipal Guard to carry out their assigned tasks and continue coordinating with the Ministry of Economy to meet the citizens’ needs according to the necessary regulations.

The attendees emphasized the importance of establishing necessary controls that contribute to regulating public spending and working on improving citizens’ living conditions in all aspects, providing suitable conditions for them, and focusing on the developmental program in all regions of Libya in all its aspects.

They emphasized the need to disclose all government expenditures in the budget sections and follow up on the committee’s work formed to present alternatives for fuel support and determine the actual needs, considering it a crucial file.

Bengdara Discusses with the U.S. Ambassador the National Oil Corporation’s Strategy to Increase Production

The Chairman of the Board of Directors of the National Oil Corporation, Farhat Bengdara, discussed with the U.S. Ambassador to Libya, Richard Norland, the corporation’s strategy to increase Libya’s crude oil production.

During the meeting, the U.S. Ambassador emphasized the importance of protecting the National Oil Corporation’s capacity to maintain and develop production. He also commended the corporation’s announcement of its new strategy to reduce carbon emissions.

Al-Abed Addresses Challenges Facing Misrata Free Zone

During his meeting with the Chairman of the Board of Directors of Misrata Free Zone on Wednesday, Minister of Labor and Qualification in the National Unity Government, Ali Al-Abed, discussed the challenges facing the free zone and the working mechanism of the employment office in the region, as well as coordination mechanisms to overcome all obstacles.

Al-Abed emphasized the importance of coordination with relevant departments in the ministry regarding the employment of national labor in companies operating in the region. He also highlighted the need to monitor companies in their recruitment of foreign labor and the importance of training job seekers in the specialties demanded by the market.

The Minister of Labor stressed the necessity of meeting all the conditions set by the ministry regarding workers’ housing, health and safety procedures, and contract verification. He emphasized the importance of collaboration with the Human Resources Development Fund in training job seekers in specialized fields and entrepreneurial projects.

Al-Huwaij Temporarily Suspends Work Regarding the Ban on Import Outside Banking Operations

The Minister of Economy and Trade in the Government of National Unity, Mohamed Al-Huwaij, addressed the Director-General of the Customs Authority on Tuesday, instructing the temporary suspension of the decision regarding the ban on import outside banking operations. This suspension will remain in effect until necessary measures are put in place in coordination with the Central Bank of Libya and relevant authorities.

Earlier this month, Al-Huwaij had issued a ban on conducting import and export activities outside approved banking operations. He emphasized the necessity for financial transfers to establish joint companies or open branches of foreign companies in Libya through banking operations.

According to the minister’s letter to the Customs Authority, the situation will revert to its previous state concerning import operations only. The work will continue temporarily according to the previously established mechanism for importing goods and commodities until necessary measures are implemented in coordination with the Central Bank of Libya and relevant authorities.