Int'l Demand to Freeze Libya's Oil Revenues Postponed

On Wednesday, the Economic Working Group (EWG) co-chairs of the International Follow Up Committee for Libya, including Ambassadors of Egypt and the United States, the European Union, and the Acting Special Representative of the Secretary-General Stephanie Williams, as well as representatives of the Libyan Economic Experts Commission, held talks to discuss the deepening economic crisis.

During the meeting, the participants supported the National Oil Corporation's decision to freeze oil revenues under apolitical management as an exceptional and temporary measure until a more durable economic arrangement is negotiated among Libyan parties either on an initial interim basis or in the longer-term context of the Libyan Political Dialogue Forum.

"Until such an arrangement is achieved, Libyan foreign reserves remain adequate to provide for the critical expenses of the 2021 budget, including wages, subsidies, and public services required by all Libyans," they concluded.

The committee co-chairs confirmed that the Libyan people should have confidence that oil and gas revenues are managed transparently and in the public interest, and any actors who would seek to undermine that confidence should be held accountable.

They also announced that a new consensus arrangement is therefore needed to set Libya on the path toward political stability, economic recovery, and collective prosperity.

The EWG also voiced its support for the UNSMIL’s efforts to swiftly convene a meeting of senior technocrats and decision-makers from Libyan economic and political institutions to agree on a series of immediate measures to be taken, including the need to convene a CBL Board meeting at the earliest opportunity to, in particular, unify the exchange rates and address the deteriorating banking crisis.

The co-chairs of the EWG also fully stressed the need for identifying solutions to address Libyan concerns of transparent and equitable management of revenues.

Notably, the Libyan Interim Government confirmed on Monday that it was closely following the war of words between the Chairman of the National Oil Corporation (NOC), Mustafa Sanalla, and the Governor of the Central Bank of Libya (CBL), Siddik Al-Kabir. A series of leaked letters, and accusations of corruption as well as mismanagement of funds by the two have taken place over the past week.

“Without going into the details and content of this speech that most Libyans followed, the Libyan government affirms what was stated in it. The government was the first to call since 2015 for a fair distribution of oil revenues, in a way that improves government services and reflects positively on the citizens’ standard of living”, the statement added.

It also stressed the need for the NOC to keep the oil revenues in its account with the Libyan Foreign Bank (LFB), until a mechanism is found to ensure a fair distribution for it.