Libya has witnessed rapid developments in the current period in the process of unifying its financial institutions, after many years of political and administrative division. This was represented by the announcement by the Central Bank of Libya that the House of Representatives and the High Council of State have reached an agreement on the first unified state budget in more than 13 years, in a statement issued today, Saturday.

Financial agreement for the first time in Libya

The Libyan statement, which confirms a historic step for the first time in 13 years, also indicates that this step, which came with the approval of the two rival legislative councils, represents an important development towards ending years of financial division, and may contribute to strengthening economic and financial stability in the country.

The adoption of a unified budget represents a significant shift in the Libyan landscape, reflecting a rare consensus between rival institutions in the east and west of the country, after years of having two separate governments, each with its own financial policies. This consensus is expected to reduce duplication in public spending, enhance transparency, and improve resource management.

Financial division in Libya

Since 2011, Libya has suffered from a deep division within its state institutions, particularly following the escalation of the conflict between rival governments in Tripoli and Benghazi. This situation has led to separate budgets and divergent financial decisions, negatively impacting economic stability and weakening the state's ability to manage its oil revenues in a unified manner.

These divisions reached their peak after Counselor Aguila Saleh, Speaker of the Libyan House of Representatives, announced that if presidential and parliamentary elections are not held in Libya within 6 months, the country is heading towards division.

In previous Libyan television statements, Saleh added that the Election Commission had succeeded in conducting municipal council elections, and there was no need to change its chairman, Emad Al-Sayeh, at the present time unless practical experience required it, and that the work of the High Election Commission should be completed without disruption and in accordance with the recommendations of the UN mission.

Speaker Aguila Saleh stressed that the House of Representatives is committed to holding the elections on time in accordance with the applicable laws, noting that the existence of two governments in the east and west could lead to fraud or exacerbate the problems.