Libya's Eastern and Tripoli-based Governments Approve Disputed Budgets Amid Political Tension and Economic Uncertainty
Libya's eastern parliament approved a $18.5 billion budget for the Benghazi-based government led by Osama Hamad, excluding funding for development projects due to a lack of project details.
The budget, worth 90 billion Libyan dinars, is backed by military commander Khalifa Haftar.
Libya also has a Tripoli-based Government of National Unity headed by Abdulhamid Al-Dbeibah, installed through a UN-backed process in 2021.
The eastern government demanded 30 billion LYD for three years, but the parliament wants more information before approving the development projects.
The Central Bank of Libya (CBL) governor, Sadiq Kabir, may not hand over oil revenue to the Hamad government due to political instability.
The CBL is the only recognized depository for Libyan oil revenues.
In February, Kabir called for a new unified government and budget, challenging former ally Dbeibah over spending.
Dbeibah, who is no longer recognized by the House of Representatives (HoR), refuses to step down without national elections.
A political process to resolve Libya's decade-long conflict has been stalled since the December 2021 election collapsed due to candidate eligibility and elections law disputes.
Libya faces the risk of renewed administrative partition and war due to ongoing disputes over government control and state revenue.
UN special envoy Abdullah Bathily warned the Security Council that Libyan authorities must agree on a national budget and address significant economic deficiencies to prevent a liquidity crisis.
Bathily, who had resigned from his position, expressed concern over the worsening economic situation in Libya.
Libya also has a Tripoli-based Government of National Unity headed by Abdulhamid Al-Dbeibah, installed through a UN-backed process in 2021.
The eastern government demanded 30 billion LYD for three years, but the parliament wants more information before approving the development projects.
The Central Bank of Libya (CBL) governor, Sadiq Kabir, may not hand over oil revenue to the Hamad government due to political instability.
The CBL is the only recognized depository for Libyan oil revenues.
In February, Kabir called for a new unified government and budget, challenging former ally Dbeibah over spending.
Dbeibah, who is no longer recognized by the House of Representatives (HoR), refuses to step down without national elections.
A political process to resolve Libya's decade-long conflict has been stalled since the December 2021 election collapsed due to candidate eligibility and elections law disputes.
Libya faces the risk of renewed administrative partition and war due to ongoing disputes over government control and state revenue.
UN special envoy Abdullah Bathily warned the Security Council that Libyan authorities must agree on a national budget and address significant economic deficiencies to prevent a liquidity crisis.
Bathily, who had resigned from his position, expressed concern over the worsening economic situation in Libya.
Translation:
Translated by AI
