Libya’s Presidential Council, Central Bank agree on economic reforms

Libya’s Presidential Council and the Central Bank yesterday agreed on economic reforms, in an effort to end fuel price instability and boost the country’s currency, according to the Libya Observer.

In a meeting brokered by Tunisia, officials agreed on measures that would reduce subsidies on fuel and restart regular grants to families of 100 Libyan dinars ($73) per child.

“Even if the reforms would bring some burdens on the citizens at first, then there will be some measures taken in line with the reforms to keep the citizens well provided for and at decent living standards,” council member Fathi Al-Mijibri said.

Central Bank governor Al-Siddiq Al-Kabeer expressed optimism on the agreement, which would also increase the foreign currency allowance from $500 to $1,000 per person.

“What we have arrived at today is the best that could be achieved in view of the current Libyan circumstances, and we really hope that we will move beyond this stage and that, with all the reforms, we may, as far as possible, raise the suffering of the Libyan citizen,” he concluded.

The US Chargé d’Affaires Stephanie Williams who was present at the meeting also praised the decision taking, emphasising that a united stance was crucial in helping the government provide for all citizens.

“Libya is facing challenges and the reforms are needed in the economic sector so Libyans’ lives can become more stable and the US is in full support for the new steps.” Williams added.

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However the measures did not see universal support. House of Representatives’ member Fathi Bash Agha, who boycotted the meeting, took to Twitter, complaining that the measures were only a means to contain public anger, citing a hike in dollar exchange rates at the time of the meeting as evidence of a negative economic outlook.

Similarly, the Tripoli-based Audit Bureau, which usually attends, did not participate. The bureau has previously strongly criticised the central bank, which it accuses of being directly responsible for Libya’s current economic austerity measures.

An ambitious target was set for the implementation of the plan, with the economic reforms scheduled to be in place by the end of July 2018.

Libya has continued to suffer from a recession since 2016, with its current GDP at half of its pre-revolution level. The lengthy and ongoing conflict is taking a heavy toll on the Libyan economy and the well-being of the population, with the UN expressing concern last month at the intensity of fighting in the city of Derna.

Libyan factions agreed to proceed with elections scheduled for 10 December at last week’s international conference hosted in Paris by French President Emmanuel Macron, which it is hoped will unify the divided country after years of infighting.

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