No Result
View All Result
Sunday, July 13, 2025
23 °c
Tripoli
24 ° Sat
24 ° Sun
  • Advertising
  • Contact
LibyaHerald
  • Home
  • Libya
  • Business
  • Opinion
  • Magazine
  • Advertising
  • Login
  • Register
SUBSCRIBE
  • Home
  • Libya
  • Business
  • Opinion
  • Magazine
  • Advertising
  • Login
  • Register
No Result
View All Result
LibyaHerald
No Result
View All Result
Home Business

Banking forum wants changes to tackle inflation and recession

Tunis, 9 November 2022

byMichel Cousins
November 9, 2022
Reading Time: 4 mins read
A A
Banking forum wants changes to tackle inflation and recession

The 4th Annual Libyan Banking Sector Development Forum called for urgent reforms (Photo: Sami Zaptia).

Libya needs to make radical and rapid economic reforms if it is to have any chance of pulling itself out of the mire of stagflation, a Libyan banking conference has been told. Bankers and financiers from across the country attending the fourth Libya Banking Sector Development Forum which got underway in Tunis today heard that the combination of recession and inflation which has affected the rest of the world – because of Covid, the war in Ukraine and consequent international uncertainties – is impacting strongly on the Libyan economy. But because of the country’s divisions, speakers at the forum warned that the chances of decisive action to deal with inflation and recession were slim.

The Libyan economy, speaker after speaker pointed out, was not only not immune to what is happening in the rest of the world, but because it has to import over 80 percent of its goods and services, and exports just one product, it is even more impacted than that of some other countries. The excessively high import ratio meant that Libya imports inflation, especially from China and from Turkey where, it was noted, it is currently at 85 percent. But, making matters worse, income is subject to oil and gas price fluctuations that are beyond the country’s control. Moreover, as far as the latter are concerned, export levels cannot be guaranteed because of the intermittent blockades of exports. Ali Hibri, the Benghazi-based deputy governor of the Central Bank of Libya (CBL), said that inflation in eastern Libya where he is regarded as the acting governor is now at 90 percent.

It is all having painful economic consequences for ordinary Libyan citizens, speakers pointed out.

People were complaining about rising prices, noted former governor of the Central Bank of Libya and planning minister in the previous Government of National Accord Taher Jehaimi. No-one was happy about their incomes, businesses were complaining about the lack of demand, and some were even closing down, he said.  As a result, he added, there were growing calls for a review of the exchange rate in order to boost the declining purchasing power of the dinar.

Unlike countries such as the US and UK where interest rates have been used to try and contain inflation, it was pointed out that Libya has few tools at its disposal in the battle against it. There were some possible solutions to the stagflation crisis in Libya, speakers said. There was near unanimous view among speakers that Libyan state spending is too high and needs to be reduced. Specifically public sector salaries and subsidies had to be cut.   There was concern, too, among the various speakers about the costs of the proposed minimum wage of LD 1,000 a month being proposed by the House of Representatives.

RELATED POSTS

Op-Ed: Libya’s Missing Link – Why Data is the Key to Reform While Preventing a Public Backlash

Libyan Banks Forum launched in Tripoli: 13-14 October

By making spending cuts, speakers noted, there would be more funding available for infrastructural and development spending which, it was said, would create more homes and more jobs.

Significantly, there were calls from a number of speakers for the repeal, or at least review, of Law 1 of 2013 which prohibits the use of interest in banking – although one supportive delegate called it “one of the best laws” ever made in Libya.

Banking sector reform was a main theme during the first day of the forum, and there was some criticism of the attitudes adopted by the Tripoli-based CBL. One speaker said that banking sector reform had to start with the CBL.  Responding to a list of priorities for the banking sector put by the World Bank’s lead economist, Abdoulaye Sy – among them rebuilding client trust in the banks, addressing irregularities and developing digital services – one speaker called for greater more trust of the commercial banks on the part of the CBL. The CBL, he said, turned a blind eye to the banking sector’s calls for change.

Mohamed Abusnina, economic professor at Benghazi University who spoke of the need to reduce public spending, address inflation and create job opportunities, believed that the CBL is unable to do anything to address banking sector issues because of its own divisions. In any event, in the current situation, with the war in Ukraine and a steep increase of agricultural imports, he thought it would be very difficult to control inflation.

Numerous reforms were called for during the first day of the forum, such as the need for a property register so that bank clients could present commercially acceptable title deeds as collateral for loans. However, it was acknowledged that many of the suggested reforms had been raised in the previous banking forums, the last of which was in 2019.

It was also noted that even though such reforms continued to be ignored, the Libyan banking community would still push for them until change was implemented.

 

Former CBL Governor and Minister of Planning Jehaimy to preside over 4th Libya Banking Forum in Tunis  8 to 9 November (libyaherald.com)

World Bank to participate in 4th Annual Libya Banking Development Forum (libyaherald.com)

4th Banking Sector Development Forum to be held in Tripoli in October 2022 (libyaherald.com)

Libya’s Banking Sector Development Forum welcomes CBL audit, insists on new meritocratic board of directors (libyaherald.com)

Libya’s banking system on verge of collapse: Leading Libyan banker

Annual Libyan Banking Sector Development Forum to be held in Tunis

Eastern CBL workshop on dual banking system makes numerous reform proposals

Minister of Finance acusses CBL of opposing reform policies and not controlling foreign currency flow – calls for reorganization of CBL board

SME finance, a new airline, a public transport service and a union of private banks announced at second banking forum

Second Libyan banking forum to be held in Benghazi

Annual Libyan Banking Sector Development Forum to be held in Tunis (libyaherald.com)

 

Tags: bankingeconomy

Related Posts

CBL receives results from meetings with international banks
Business

CBL workshop on ‎”The Role of the Banking Sector in Revitalising Stalled Housing Projects and Urban Development”‎ to be held in Tripoli on 13 July

July 11, 2025
Preparations for the second ‘‘Made in Libya’’ edition in Niamey, Niger progressing
Business

“Made in Libya” exhibition to be held in Benghazi from 10 to 13 August

July 11, 2025
Sirte and BACB to improve cooperation
Business

Sirte Oil completes drilling of horizontal well in Zilten field producing 1,985 bpd using local cadres

July 11, 2025
Libya Development and Reconstruction Fund signs contract with Turkey’s Ankamenia for maintenance of Benghazi University’s medical colleges
Business

Libya Development and Reconstruction Fund signs contract with Turkey’s Ankamenia for maintenance of Benghazi University’s medical colleges

July 10, 2025
Libyan olive oils win gold at Anatolian, Berlin and Japan 2025 international olive oil competitions
Business

Libyan olive oils win gold at Anatolian, Berlin and Japan 2025 international olive oil competitions

July 10, 2025
NOC announces force majeure at Zawia port
Business

Libyan Fertiliser Company’s urea plant achieves a 95 percent production rate

July 10, 2025
Next Post
Eastern headquartered banks to launch LD 3 bn loans initiative by year end

Eastern headquartered banks to launch LD 3 bn loans initiative by year end

Launch of the British Libyan Business Association (BLBA) in Libya 

Launch of the British Libyan Business Association (BLBA) in Libya 

ADVERTISEMENT

Top Stories

  • Benghazi port receives 398 containers of mixed goods, 25,000 tons of wheat, 28,500 tons of barley and 6,000 tons of cement

    All imports into Libya must be paid for through official bank transactions

    0 shares
    Share 0 Tweet 0
  • BP to reopen office in Libya, Shell discusses prospects for cooperation in oil field development‎

    0 shares
    Share 0 Tweet 0
  • Libya Development and Reconstruction Fund signs contract with Turkey’s Ankamenia for maintenance of Benghazi University’s medical colleges

    0 shares
    Share 0 Tweet 0
  • Libyan olive oils win gold at Anatolian, Berlin and Japan 2025 international olive oil competitions

    0 shares
    Share 0 Tweet 0
  • Aldabaiba opens First Phase of Tripoli’s Third Ring Road

    0 shares
    Share 0 Tweet 0
ADVERTISEMENT
LibyaHerald

The Libya Herald first appeared on 17 February 2012 – the first anniversary of the Libyan Revolution. Since then, it has become a favourite go-to source on news about Libya, for many in Libya and around the world, regularly attracting millions of hits.

Recent News

CBL workshop on ‎”The Role of the Banking Sector in Revitalising Stalled Housing Projects and Urban Development”‎ to be held in Tripoli on 13 July

Attorney General provides update on investigation of incidents resulting from Tripoli 2025 armed clashes and demonstrations

Sitemap

  • Why subscribe?
  • Terms & Conditions
  • FAQs
  • Copyright & Intellectual Property Rights
  • Subscribe now

Newsletters

    Be the first to know latest important news & events directly to your inbox.

    Sending ...

    By signing up, I agree to our TOS and Privacy Policy.

    © 2022 LibyaHerald - Powered by Sparx Solutions.

    Welcome Back!

    Login to your account below

    Forgotten Password? Sign Up

    Create New Account!

    Fill the forms below to register

    *By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
    All fields are required. Log In

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    No Result
    View All Result
    • Login
    • Sign Up
    • Libya
    • Business
    • Advertising
    • About us
    • BusinessEye Magazine
    • Letters
    • Features
    • Why subscribe?
    • FAQs
    • Contact

    © 2022 LibyaHerald - Powered by Sparx Solutions.

    This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.