Libya's Path Toward Fiscal Unity: A Major Step Forward

Libya's legislative chambers have reached a deal for a 'unified development programme' to merge the finances of its divided administrations. The Central Bank of Libya aims to establish a clear framework for development spending, addressing long-standing fiscal discrepancies between the country's east and west political entities.

Libya's journey to financial unification took a significant leap forward as representatives from the country's two legislative chambers inked a deal on a 'unified development programme,' according to the central bank.

Despite being an oil-rich nation, Libya has faced fiscal discord with separate budgets for its east and west administrations for over a decade. The central bank did not disclose specific details of the programme but noted that development spending has been a traditional battleground for oil revenue allocation between the rival factions.

By establishing a clear framework for harmonizing spending and fund allocation, the agreement sets a course for safeguarding the macroeconomy from potentially severe crises. Libya's House of Representatives in Benghazi and the High State Council in Tripoli, each representing the east and the west, have embarked on this critical initiative.

(With inputs from agencies.)