UN: Libya's CBL Unification No Longer Recommended But Required

The main finding of the audit is that the unification of the Central Bank of Libya is no longer simply recommended but required, Special Envoy of the United Nations Secretary-General Ján Kubiš said.

"While Libya’s foreign currency reserves were largely protected during the past five years, the pision in the Central Bank of Libya has eroded the integrity of the banking system and impeded monetary reform," Kubiš explained in his remarks to the Security Council.

He added that due to the lack of a unified budget and successive oil blockades, both branches of the Central Bank extended credit to their respective former governments, thereby accumulating large debts. "Managing this debt is only possible if the Central Bank unifies. In plain terms, Libya’s banking system will likely collapse, absent unification."

The UN envoy pointed out that the transmission of the audit report marks the end of the financial audit review and the beginning of the process to unify the two branches of the Central Bank of Libya. It is my hope that the international community can support this process as it moves forward, within the framework of the Berlin Process.

"On 31 May, the Presidency Council launched a series of workshops to develop a legal framework and structure for the Libyan High National Commission for Reconciliation, with participation from the African Union, UNSMIL, the Minister of Justice as well as legal experts and representatives of internally displaced persons," Kubiš stated.

"The United Nations and the African Union are supporting initiatives planned by the Presidency Council, including meetings with tribal and local community leaders, women, and youth. Advancing these initiatives is essential for laying the groundwork for a longer-term national reconciliation process, based on clear accountability, as well as promoting unity and social cohesion ahead of the December elections."