In a statement issued Saturday, the central bank said it “strongly welcomes” the signing of an annex to the Unified Development Agreement adopting the state's general expenditure framework, describing it as the first consensus on unified national spending across Libya in over 13 years.
The bank said the agreement establishes a financial framework aligned with the country’s fiscal capacity, aimed at ensuring financial sustainability, strengthening public spending discipline, and supporting balanced development across all regions.
The deal was reached between the eastern-based House of Representatives and the western-based High Council of State, marking the first such agreement since 2013, prior to the country’s political split following the 2014 conflict.
Central bank governor Naji Issa said, according to Asharq Al-Awsat, that the agreement signals Libya’s ability to overcome divisions and move toward a unified economic vision.
The central bank said the step supports its efforts to stabilize the exchange rate and strengthen the Libyan dinar by reducing fiscal distortions and improving macroeconomic indicators.
Asharq Al-Awsat further reported that the budget allocates funds across key categories, including salaries, subsidies, development projects, and support for the National Oil Corporation, which underpins more than 95 percent of Libya’s economic output.
The report said the Government of National Unity in Tripoli will oversee salaries, operational spending, and subsidies, while a joint committee will determine priorities for development spending under central bank supervision.
The central bank also praised what it described as the “responsible role” of Libyan stakeholders in reaching the agreement and commended the United States for supporting mediation efforts that helped facilitate the deal.
US officials also welcomed the development, with senior adviser Massad Boulos saying, according to Asharq Al-Awsat, that the agreement follows months of US-backed facilitation as part of a broader effort toward national reconciliation.
The central bank said it remains committed to transparency and disclosure in implementing the agreement, emphasizing the importance of clear financial data and strengthened confidence in the management of public resources.
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