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The Libyan street breathed a sigh of relief after the official signing of the agreement between the House of Representatives and the state to resolve the Central Bank crisis, provided that this contributes to restoring the living situation to its health by improving economic conditions and preventing further collapse of the local currency, high levels of inflation and high prices, in addition to resuming the production and export of oil to… World markets.
A member of the House of Representatives, Abdel Moneim Al-Arfi, said that during the House of Representatives session next Monday, the agreement regarding the appointment of a new governor and board of directors for the Central Bank will be approved and ratified, adding: I will work during the session as a member of the Sovereign Positions Committee, to demand consideration of the file of the other seven sovereign positions.
Observers believe that the agreement regarding the Central Bank could be a good model for what agreement might look like on a number of other files, especially related to the remaining appointments to sovereign positions according to the “Bouznika” agreement in January 2021.
In turn, the head of the UN mission to Libya, Stephanie Khoury, expressed her hope that this agreement would be a real turning point in the course of the Libyan crisis. She added that the unified central bank will allow the state to manage its resources more efficiently, which will contribute to improving the economic situation and supporting local and international investments, considering that building strong and transparent institutions is the key to restoring confidence between the people and the government, and that the upcoming elections will be a test of these efforts. Khoury praised the fruitful cooperation between the Libyan parties and their international partners, noting that the consensus achieved around the Central Bank reflects a strong international desire to end the Libyan conflict once and for all.
The joint presidency of the governments of the United States and Italy issued a statement in which they praised the progress made by the United Nations mission in enabling the Libyan parties to reach a compromise on appointing a new leadership for the Central Bank, stressing the need to implement this agreement to ensure transparency and accountability.
The US special envoy to Libya, Ambassador Richard Norland, said after a meeting with the person in charge of running the Ministry of Foreign Affairs in the National Unity Government, Al-Taher Al-Baour: “We discussed how the successful implementation of the agreement reached regarding the leadership of the Central Bank of Libya would contribute to enhancing progress in the political process.” “At a critical time for Libya, and we discussed measures that strengthen Libya’s sovereignty in light of the escalation of regional unrest.”
The British Embassy in Libya also announced its welcome of the agreement, and said in a statement published on its page on the “X” platform: “Trusted and accountable leadership in the Central Bank of Libya, good governance and transparency are all necessary to restore the international confidence necessary for Libya’s stability and prosperity.”
Clauses
The agreement between the House of Representatives and the State consists of 7 clauses that define the procedures for appointing the Governor of the Central Bank of Libya, his deputy, and the Board of Directors, and includes the nomination of Naji Muhammad Issa Belkacem for the position of Governor, and Maree Muftah Raheel Al-Barassi as Deputy Governor. According to the agreement, the House of Representatives must issue a decision to appoint them within a week from the date of signing the agreement, in accordance with Article 15 of the Libyan Political Agreement, and the new governor must also nominate members of the Board of Directors in consultation with the legislative authority within a period not exceeding two weeks from assuming his duties.
Members must be appointed in accordance with applicable Libyan legislation and the criteria specified in Appendix No. 1 of the agreement, with the membership of the Undersecretary of the Ministry of Finance suspended on the Board of Directors. The agreement prohibits the Governor of the Central Bank of Libya and his deputy from exercising any powers of the Board of Directors in the event of their absence, and any decision issued by the management of the Central Bank of Libya that conflicts with what is stated in the Libyan Political Agreement and this agreement is also cancelled.
