The Central Bank of Libya (CBL) announced this morning, 11 April, that it welcomes the signing of Annex No. 1 to the Unified Development Agreement.

It stated that approval of the general expenditure schedules of the state applies to all its chapters (1st to 4th).

The agreement is a step towards unifying financial policy and strengthening the discipline of public spending, it added.

It is the first financial agreement between the polarised Eastern and Western Libyan administrations in Libya for over 13 years.

The CBL said the agreement is to support financial sustainability, promote balanced development between the regions, enhance the stability of the exchange rate and strengthen the Libyan Dinar

The CBL further noted that in regulating spending and reducing financial distortions, it believes that the agreement will have a positive effect on the economy,

Finally, the CBL said it values the role of the US in supporting mediation efforts on reaching this agreement.

The agreement has been welcomed by both the Tripoli-based GNU and the Benghazi-based GNS. 

The GNU said that after 13 years “of political deadlock”, there had finally been an agreement that would regulate financial spending in the whole of Libya. Providing all parties agreed to its implementation, the prime beneficiary would be ordinary Libyans, it added. They should see an improvement in living standards, in prices stabilising and the Libyan Dinar regaining strength.

Calling it “a promising step”, it nonetheless warned that the real test would be the commitment of all parties to ensure the agreement translated into what it called “tangible results” which ordinary Libyans could feel in their daily lives.

For its part, the GNS said described the agreement as an important step on the path to unifying institutions and improving economic stability throughout the country.

Describing the agreement as a “foundation stone” for launching balanced development programmes throughout the country, it added that the achievement reflected the ability of Libyans to overcome challenges “when visions and wills are united”. 

The GNS thanked the CBL and all who had helped bring about the agreement. 

The GNU also thanked the CBL as well as representatives from the HoR and the State Council but it also thanked the US Treasury Department and Massad Boulos, President Trump’s senior advisor on Middle Eastern and African affairs.

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