Libya is on the verge of adopting a unified national budget. Following an agreement signed between the two primary opposing factions—Tripoli, home to the internationally recognized Government of National Unity (GNU), and Benghazi, represented by the House of Representatives supported by Marshal Haftar—the country is moving toward financial consolidation.
Facilitated by American mediation, the parliaments of both regions signed an accord to adopt a common budget. This represents a significant feat in a nation deeply divided since the fall of Gaddafi in 2011, where political progress has remained stagnant despite numerous initiatives by the UN, the African Union, and neighboring countries.
After years of managing the war-torn country independently, the two camps recently succeeded in reunifying the Central Bank. This move ended the disruptions that plagued financial institutions due to political disputes between the East and West, effectively halting the fiscal crises that hindered regional governance.
Despite intensified political disagreements fueled by foreign interference, both parties managed to transcend their divisions to secure a minimum consensus on hydrocarbons. For years, Libyan oil was largely subject to smuggling despite various restrictions. This led to significant financial deficits and eroded the credibility of authorities who were unable to transparently manage energy exports.
Joint Oil Exports and Equitable Revenue Sharing
The camps of Abdul Hamid Dbeibah (GNU) and Marshal Haftar have finally agreed to organize joint oil exports and ensure the equitable sharing of revenues. The unification of public spending, announced yesterday by the Tripoli government, appears to be the culmination of a long process of economic and financial rapprochement. “This step reflects real progress toward unifying fiscal policy and enhancing the management of public spending,” stated the Central Bank, noting that this is the first consensus on unified spending in Libya in over 13 years. The agreement was signed by Issa Al-Arebi (Benghazi) and Abdeljalil Al-Chawish (Tripoli).
Controlled exports have now reached 1.5 million barrels per day (bpd), with ambitions to increase to 2 million bpd. Although Libya’s reserves are estimated at 48.4 billion barrels, the country has faced a deficit since 2011 due to political and security instability. With only $22 billion in revenue for Africa’s largest oil reserve, the Central Bank estimates a deficit of $9 billion.
Prime Minister Dbeibah thanked Massad Boulos, advisor to Donald Trump for Arab and African affairs, for his support in the mediation efforts. “This is a step full of promising signs, but the real test remains the serious commitment of all parties to translate this into concrete results for citizens in their daily lives,” Dbeibah stated. The challenge now for both camps, and the international community, is to accelerate the political process to establish elected institutions and end the legitimacy crisis.
Source: lalgerieaujourdhui.dz
