Libya’s parallel government in the east can no longer borrow money from the central bank it set up in 2014 except to pay state salaries, the bank has said, suggesting the east may face significant financial problems.
The bank said on Monday that the Benghazi government could not continue to borrow from the bank and should seek alternative sources of funding to finance the budget.
It later clarified to Reuters that this would not affect government borrowing to cover public sector wages, but that the government must provide it with data on these.
The eastern central bank said that now it pays all public sector salaries in the east. The Tripoli-based Central Bank of Libya did not immediately respond to requests for comment.