Libya’s Benghazi based House of Representatives (parliament – HoR) yesterday approved the existing public debt held by the Treasury up to 2025, amounting to 303 billion and 441 million Libyan dinars, and published it in the Official Gazette.
According to the HoR the public debt consists of Treasury bonds or treasury bills, returns accrued to the Central Bank of Libya after settling bonds with commercial banks, temporary advances and interest-free loans granted by the Central Bank, in addition to the balance of the suspended account held by the Central Bank.
Article Two of the Official Gazette authorizes the Central Bank to settle the debts by deducting 3% of the Treasury’s total revenues from oil, gas, and their derivatives, and from the Treasury’s surplus share of the Central Bank’s profits.
Parliament also directed the Central Bank to deduct from the balance of the additional fee account (revenues from fees on foreign currency sales), the balance of the revaluation reserve resulting from changes in the Libyan dinar’s parity, and the net proceeds from foreign assets.
Article Three of the Official Gazette stipulates that the Central Bank is responsible for recording the deducted amounts in its accounting books and records as of the settlement date, reconciling them with the Ministry of Finance and regulatory bodies, and reporting the actions taken.
Regarding borrowing to repay the public debt, Parliament recommended against borrowing domestically or internationally, or issuing any guarantees of any kind that would create financial obligations, except as stipulated in the State’s General Budget Law.
