Tripoli: The Governor of the Central Bank of Libya, Naji Issa, stated that the state’s goals cannot be achieved under the current division, highlighting how the institutional fragmentation of state entities is a significant hurdle to economic stability and necessary reforms. He remarked that the Central Bank is operating amid a fragmented reality dictated by current circumstances.
According to Libyan News Agency, the Governor made these remarks at the Banking Investment Conference held in Tripoli. He shared that he is working with two governments, not through formal agreements but as a practical reality, due to the division within the Ministry of Economy, the Ministry of Finance, and most state sectors and institutions.
The Governor stressed that this political division has affected the Central Bank of Libya itself, leading to criticism of the bank and the banking sector at large, despite the lack of a unified vision and cohesive state. He noted that the Central Bank does not have magic solutions in this fragmented environment.
He further explained that all state institutions, including the Ministry of Finance, are facing considerable challenges. The state requires approximately $3 billion to meet its obligations, yet the net revenues transferred to the Central Bank are only about $1.5 billion under the current spending format.
The governor questioned how the Central Bank can manage this situation given the demands from merchants and the private sector. He called for realism, emphasizing the need to acknowledge the existing facts and act with national responsibility to address the current phase.