After a long wait that lasted more than seven full years, the Governor of the Central Bank of Libya, Al-Siddiq Al-Kabeer, and his deputy, Ali Al-Hibri, put an end to their chronic conflicts, and announced the actual start of implementing a plan of several stages to unify financial institutions, which boosted indicators and hopes that the new year will witness an economic recovery in the country, supported by the jump in oil prices during the past months.
This expected announcement was delayed for several months due to disagreements between Al-Kabir and Al-Habri over some details to unify the two central banks in Tripoli and Benghazi under one administration, which necessitated the use of an international accounting firm to audit the accounts of the two banks and organize the procedures for their reintegration.
Al-Kabeer revealed the different steps that preceded the official announcement of the bank’s unification agreement and the reasons for its delay. He said: «We started the process of reviewing the accounts of the two banks, and a specialized team was assigned to provide all data and information through the General Attorney’s office in order to enhance the principles of responsibility, transparency and accountability».
He pointed out that the most important step after unifying the Central Bank is to address the negative effects resulting from its long division, such as the clearing crisis and its repercussions on the safety of the financial conditions of the banks, which led to the confusion of the supervisory role of the Central Bank of Libya. In addition, previous challenges that the Libyan economy and banking sector have suffered for decades, and the most important of which is the weakness The quality and efficiency of public spending, the structural imbalance in the Libyan economy, its dependence on a single source of income, which is oil, and the repeated closure of fields and export ports.
Al-Kabeer explained that the set of goals that were set on the sidelines of the agreement to unify the banking management aims to approve an effective monetary policy, take supportive measures for the exchange rate policy adopted by the Directors Board of the Central Bank, starting from January 2021, and perform required diligence to enhance efforts to combat money laundering and terrorist financing.
He continued by saying: «We will work to have the banking sector have a pivotal role in activating the role of the private sector to move the wheel of the economy, diversify sources of income, launch spatial and sustainable development projects, and create job opportunities in accordance with the vision of the government of national unity».
Adapted from Independent Arabia Website