UNSMIL: Libya Has One Unified National Budget

AAC NEWS FOLLOW-UPS

The UN Support Mission in Libya (UNSMIL) proclaimed that the Libyan parties agreed on a two-month budget to allow for the newly unified executive authority to decide on the full budget for 2021. UNSMIL mentioned that they agreed on addressing the banking crisis.

In a statement, UNSMIL said they brought together relevant parties from the east and west sides of Libya to work out an agreement with the support of international financial institutions and the Economic Working Group of the Berlin Process.

“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 clarified.

the unification of the budget is followed by a good decision of the Board of Directors of the Central Bank of Libya (CBL) 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 the credit crunch, but it will reduce pressure on the banking system.” UNSMIL restated.