Divisions plague Libya's financial institutions

Subject

Divisions in financial institutions.

Significance

The finance ministry of the UN-backed Government of National Accord (GNA) on December 21 called for an urgent meeting of the board of the Central Bank of Libya. More effective financial institutions could provide a strong basis for political reunification and economic revival. Yet the political crisis, corruption and pre-existing weaknesses undermine these institutions.

Impacts

• The GNA will struggle to finance consistent basic services and implement coherent economic policies.
• Libyans will continue to lose confidence in the GNA, especially if the economy does not pick up.
• The NOC will still court international oil and gas companies to attract new investment.