UNSMIL to conduct technical meeting next week to agree on economic reforms in Libya

CAIRO -12 December 2020: Acting Special Representative of the Secretary-General of the United Nations for Libya (ASRSG), Stephanie Williams and the co-chairs of the Economic Working Group of the Berlin Process including Egypt, USA, and EU, will convene on 14 and 15 December, a technical meeting of representatives of Libya's main financial institutions at the UN Office in Geneva to reach an agreement on critical policy reforms. 

These efforts are being undertaken to address the Libyan people's needs and establishing a more durable and equitable economic arrangement.

The meeting comes at a critical juncture for the Libyan economy, which suffers from structural problems, exacerbated by the impact of the conflict, as well as by the months-long oil blockade for most of 2020, and the Covid-19 epidemic. Also, oil sales lost $11 billion, and Libya's foreign exchange reserves have decreased dramatically in 2020 due to revenue loss and increased expenditures that diverted funds away from development spending.

On Jan. 18, eastern tribes, supported by the Libyan National Army(LNA), halted exports from five key oil terminals, which has reduced the country’s crude production to its lowest since the 2011 civil war.

The division within the Central Bank of Libya is also causing a deepening crisis within the banking sector which led to increased inflation, creating distortions and impairing the basic functionality of the state.

The meeting will be an opportunity to make progress toward agreeing on a set of measures to avoid further economic deterioration. "It is time to put aside party politics and act in the interests of the Libyan people," William said.

It should be noted that Williams held on Dec. 11 a virtual consultative meeting for the Libyan Political Dialogue Forum (LPDF), during which participants laid out their views and proposals on the most suitable and consensual method to move forward with agreeing on a selection mechanism for the executive authority for the preparatory period leading to national elections, based on the roadmap agreed upon by the LPDF in its meeting in Tunisia in November.

ASRSG Williams praised the constructive discussions that were characterized by a sense of seriousness and high awareness of the critical situation in the country. “Today I heard many of you stressing the need to move forward promptly, and that is a very positive indication,” said ASRSG Williams, emphasizing it is up to the Libyans to decide on a way forward and that they should “seize this opportunity” to achieve tangible progress and bring back hope to the Libyan people in the political process.

Based on its commitment to ensure equal opportunity for all LPDF members, UNSMIL will reach out to all members who were unable to attend this meeting and seek their views and proposals on the most suitable and consensual way to agree on a selection mechanism of the executive authority, to move forward in the implementation of the Road Map.