Libya finance minister: Political divide blocking economic reform

Libyans have been suffering under difficult economic and living conditions due to the war-plagued, deteriorating economy and political divide between the Tripoli-based, internationally recognized Government of National Accord (GNA) and the Al-Bayda-based Libyan Interim Government. The political division has also resulted in a GNA-affiliated central bank in Tripoli, headed by Sadiq al-Kabir, who was appointed in 2011 by the Transitional National Council, and a central bank in Al-Bayda, headed by Mohammed al-Shukri, who was appointed by the Libyan House of Representatives.

Al-Monitor interviewed GNA Finance Minister Osama Hamad on April 24 about the impact of the political division on the economic situation in Libya and the nature of relations between the two Ministries of Finance. The interview, by phone, also touched on reconstruction plans. In February, the International Monetary Fund (IMF) announced that the cost of reconstruction will exceed $80 billion. Hamad explained that he has called for postponing plans for reconstruction until after the elections to be held this year because the project requires decisions that should be made by a government representing the will of all Libyans. He also spoke about the economic reform program the GNA set out in November 2017, noting that it requires a political will that is absent amid the dueling governments. As far as recovering debts owed to Libya by foreign governments, Hamad said his ministry has formed a committee to demand repayments of the much-needed funds, but the going is difficult.

Al-Monitor:  How does the presence of two governments in Libya and the armed conflict affect the economic situation?

Hamad:  The economic situation is directly affected by the degree of political and security stability. The multiple governments, as well as armed conflict, do indeed negatively affect the economic situation.