UN warns Libya faces economic collapse amid central bank crisis
2024.08.26 19:06
By Ayman Werfali, Adam Makary and Enas Alashray
TRIPOLI (Reuters) – The United Nations Support Mission in Libya (UNSMIL) issued a statement late on Monday expressing deep concern “over the deteriorating situation in Libya resulting from unilateral decisions.”
Disputes over control of Libya’s Central Bank have raised alarms about the potential misuse of the country’s financial resources.
“UNSMIL is convening an emergency meeting for all parties involved in the Central Bank of Libya crisis in order to reach a consensus based on political agreements, applicable laws, and the principle of the central bank’s independence,” the statement said.
The UN mission has called for the suspension of unilateral decisions, the lifting of force majeure on oil fields, the halting of escalations and use of force, and the protection of Central Bank employees.
Libya’s economy is heavily reliant on oil revenue, and there have been moves to impose force majeure on oil fields, effectively cutting off the country’s primary source of income.
Earlier on Monday, Libya’s eastern-based administration ordered the closure of oilfields in eastern Libya, which account for almost all the country’s production, halting both production and exports after tensions flared over the Central Bank’s leadership.
There has been no confirmation of these actions from the internationally recognized government in Tripoli or from the National Oil Corp (NOC), which controls the country’s oil resources.
