The Presidential Council said that dual spending (expenditures by two governments) has created an unprecedented financial and economic situation that is difficult to manage with the available tools, sharing the Central Bank’s assessment of the state of spending.
In a statement issued after the Central Bank announced the adjustment of the dinar’s exchange rate, the Presidential Council expressed its deep concern over financial and monetary developments.
The Presidential Council held the previous administration of the Central Bank partly responsible for contributing to the creation of “uncontrolled” government spending, according to the statement, pointing out its rejection of the proposal to prepare emergency financial arrangements for 2021 and its misuse of the financial exception (12/1 method) to justify spending violations.
It added that the previous administration directly funded the two governments independently of the High Financial Committee that had been established, which led to the marginalization of the committee’s role. It excluded the current administration of the Central Bank of Libya, saying that it does not bear legal or financial responsibility for the structural division in public finances and the government’s payment system.
The Presidential Council also expressed its rejection of considering the devaluation of the dinar as a solution to the financial crisis, asserting that it will worsen the problem by increasing government spending and demand for foreign currency.
It renewed its call on the House of Representatives and the High Council of State to agree on a unified general budget, or to reactivate the High Financial Committee as an urgent and temporary framework, considering it a temporary consensual financial framework that resulted from a serious national dialogue supported by international resolutions, especially the Security Council.
The Presidential Council also stressed its support for the current Central Bank's administration, urging it to work jointly to preserve the value of citizens’ incomes and to adhere to national and international obligations.
