By Ashraf Abdul-Wahab.
Tripoli, 5 July 2014:
The Grand Mufti, Sheikh Sadik Al-Ghariani, has forbidden the Central Bank of Libya and state-sector officials . . .[restrict]from accepting any interest-bearing loans to support the budget.
Despite the present difficult financial situation, they must not do so, “under any circumstances”, he ruled.
In a fatwa issued dated yesterday, 4 July, he warned that if the use of interest were added to Libya’s present problems, then it would be punished and never prosper.
Neither the Central Bank nor the government have asked for support from the World Bank, the IMF or the international banking community. The bank says that it has enough money at its disposal to fund state spending for at least the next three years without a drop of oil being sold.
In any event, the government’s liquidity problems have stemmed not so much from the oil terminals blockade as from Congress only late last month approving the budget – and now further delays with the Central Bank referring it to its legal department. [/restrict]
