The Governor of the Central Bank of Libya (CBL) Al-Siddiq Al-Kabir held a video conference with the Deputy Assistant Secretary of the US Treasury, Eric Meyer, and US Ambassador Richard Norland on Sunday. They discussed the latest developments in Libya’s financial and fiscal execution, and progress on the reunification of the CBL.
The US Embassy in Libya said in a statement that the two sides agreed on the importance of transparency in the payment of salaries and essential government expenditures, in the interest of the Libyan people.
They also affirmed the need to maintain the independence and neutrality of state institutions, such as the CBL and National Oil Corporation (NOC).
“Meyer looked forward to meeting Governor Al-Kabeer on his upcoming visit to Washington in March to discuss continued progress on Libya’s economic reform priorities,” the Embassy noted.
In December, the CBL announced a plan to end the 7-years of division between the eastern and western banks. It said in a statement that the two officials had met in Tunisia, and agreed on a detailed plan to unite the bank.
They discussed the stages of the unification in accordance with the roadmap proposed by the international accounting firm Deloitte, with the completion of the international financial audit review for the Central Bank in July.
“The division complicates access to foreign exchange, impedes monetary reform, and undermines the integrity and oversight of the commercial banks,” the UN Support Mission in Libya (UNSMIL) said.
The review seeks to create the conditions and provide recommendations to unify the CBL, thereby improving public confidence, transparency, and integrity of the banking sector.
Notably, UNSMIL facilitated the process that included concluding the terms of reference for the review with both CBL branches.
To ensure independence and best practice, the United Nations Office of Project Services (UNOPS) managed the procurement process that resulted in the selection of Deloitte as the independent auditor.
“The unification of the CBL is no longer simply recommended but required. The division complicates access to foreign exchange, impedes monetary reform, and undermines the integrity and oversight of the commercial banks. The division, in combination with the lack of a unified budget, contributed to both banks accruing debt to finance the respective former governments,” Deloitte’s review noted.