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Author: Echo of Libya

House of Representatives Urges Continuation of Work by Central Bank Governor and Deputy

The Director of the Office of Presidential Affairs in the House of Representatives has sent a formal letter to the Governor of the Central Bank of Libya.

The letter reads as follows:


Respected Sir,

Governor of the Central Bank of Libya,

Greetings,

Upon reviewing the correspondence dated June 20, 2024, with reference number (81/1199), which includes the receipt of communication from your esteemed bank’s postal department, along with decisions numbered (21-22-2024) concerning the appointment of a new governor and board of directors for the Central Bank, as well as the formation of a handover committee, His Excellency has instructed me to convey the following:

The decisions issued by the Presidential Council are deemed null and void. This stance is particularly significant following the House of Representatives’ confirmation of the continuation of the current governor and his deputy in their positions.

Please accept our highest regards and respect.


This communication underscores the House of Representatives’ position on the recent decisions by the Presidential Council regarding the Central Bank of Libya.

House of Representatives Cancels Appointment Decision for Al-Shukri

The House of Representatives has issued Decision No. (7) of 2024, which addresses the governance of the Central Bank of Libya. This decision annuls Decision No. (3) of 2018 regarding the appointment of the Governor and establishes the current governance framework for the Central Bank. The decision follows an extensive review of relevant legal and regulatory documents, including:

  • The Constitutional Declaration of August 3, 2011, and its amendments
  • Law No. (10) of 2014 concerning the election of the House of Representatives
  • Law No. (4) of 2014 regarding the internal regulations of the House of Representatives
  • Law No. (1) of 2005 on banks and its amendments
  • Decision No. (3) of 2018 issued by the President of the House of Representatives on the appointment of the Governor
  • Decision No. (12) of 2024 related to the continuation of the Governor’s duties
  • The regular meeting of the House of Representatives No. (1) of 2024, held on Tuesday, Muharram 15, 1446 A.H., corresponding to August 20, 2024

The decision outlines the following provisions:

Article 1:
Decision No. (3) of 2018, which appointed Mr. Mohammed Abdel Salam Al-Shukri as Governor of the Central Bank of Libya, is hereby revoked.

Article 2:
The Board of Directors of the Central Bank of Libya will continue under the chairmanship of the current Governor, Mr. Saddek Elkaber, until a new appointment is made.

Article 3:
The members of the Board of Directors are to assume their roles within a few days from the date of this decision’s issuance. This decision will be published in the official gazette.

Article 4:
This decision takes effect immediately upon issuance and will be published in the official gazette.

The House of Representatives has issued this decision to maintain governance and stability within the Central Bank of Libya.

أصدر

Statement of the Libyan Planning, Finance, and General Budget Committee on the Central Bank of Libya

The Committee on Planning, Finance, and the General Budget of the House of Representatives has reviewed the decision of the President of the Council No. (22) of 2024, regarding the reformation of the Board of Directors of the Central Bank of Libya.

Within this framework, the Committee considers this decision null, given its violation of all legal means supporting it, including the Constitutional Declaration, its amendments, and the political agreement, reaching the provisions of Law No. (1) of 2005, its amendments, and especially the clauses concerning the authority of the legislative body. These clauses emphasize that the original authority for appointing the Board of Directors of the Central Bank of Libya is vested in the House of Representatives, without mentioning any delegation of this authority to any other body.

Consequently, what was issued by the Presidential Council is both void and illegitimate. In addition to being an infringement on the powers and competencies of the legislative authority, it undermines the stability and cohesiveness of the country’s institutions.
The Committee on Planning, Finance, and the General Budget of the House of Representatives strongly denounces and condemns this action, considering it legally invalid and devoid of any political legitimacy from the Presidential Council. It is an act that leads to the disintegration of institutions and one of the most important pillars of the state. Therefore, the Committee calls on the Central Bank of Libya to take a clear stance and avoid these unconstitutional actions by adhering to its original legal framework, which was approved by Law No. (6) of 2004.

The Committee also calls on all executive institutions to refrain from complying with such unlawful measures, ensuring the safety of the law and the safety of the institutions. They are warned of the consequences of acting against this, as it constitutes a severe violation.

Statement Regarding the Presidential Council’s Encroachment on the Jurisdictions of Legislative Authorities

The High Council of State has issued a statement regarding the Presidential Council’s encroachment on the legislative bodies’ authorities. This is a confirmation of the governing principles outlined in the Libyan Political Agreement, which stipulates:

  • Commitment to the principle of separation of powers among the legislative, executive, and judicial branches.
  • Full adherence to relevant United Nations Security Council resolutions concerning the Libyan issue, foremost among them Resolution 2259, and subsequent resolutions.
  • Based on the second paragraph of Article 60 of the Libyan Political Agreement, which states that all parties must respect the institutions arising from this agreement and pledge to support them and not undermine their independence and granted powers.
  • Based on Article 15 of the Libyan Political Agreement, which stipulates that the authority to decide on leadership positions for sovereign roles, including the Governor of the Central Bank of Libya, in terms of dismissal and appointment, is vested in agreement between the two councils (the House of Representatives and the High Council of State), with no involvement from the Presidential Council.
  • This is in accordance with the applicable legislation, such as Law No. 1 of 2005, which stipulates that the Central Bank is under the authority of the legislative power.
  • Referring to the High Council of State’s rejection of Resolution No. 3 of 2018 issued by the House of Representatives for its violation of Article 15 of the Libyan Political Agreement, as there was no agreement between the councils for the appointment of the Governor of the Central Bank of Libya; and also noting that the United Nations Support Mission in Libya rejected it at the time for the same reason. Additionally, reminding of the provisions of Article 2 of the outcomes of the Libyan Political Dialogue Forum, which outlined the Presidential Council’s competencies in executive affairs and granted it – exclusively – the authority to appoint and dismiss the following positions: Head of the General Intelligence Agency unless opposed by the House of Representatives, Head and members of the High Commission for Reconciliation, and other heads of state-affiliated agencies according to the applicable legislation.

Therefore, the High Council of State affirms that the decision published on the official page of the Presidential Council regarding the appointment of the Governor of the Central Bank of Libya is null and void, without value, and should not be recognized, in accordance with the provisions of the Constitutional Declaration, the Libyan Political Agreement, and the political understandings between the councils (Abu Zniqa) and Security Council resolutions.

It also confirms the continuation of Mr. Sadiq Omar al-Kabir’s appointment as Governor of the Central Bank of Libya until a decision is made on sovereign positions according to Article 15 of the Libyan Political Agreement.


ABC Bank reveals its financial results for the half-year of 2024

Bank ABC continued its strong performance with an H1 net profit of US$150 million, a 24% growth over the corresponding period last year, driven by a 10% increase year on year (YOY) in total operating income from core business growth and higher average asset volumes,after absorbing the impact of EGP depreciation, underpinned by bothoperating expenses and cost of credit being well controlled. The Group’s balance sheet strength was also maintained, with capital andliquidity ratios at robust levels, while total assets reached US$44 billion.

During the period, Bank ABC received a number of prestigious industry awards, including ‘Best Trade Finance Bank in the Middle East’ by GTR, ‘Best Islamic Financial Institution in Bahrain’ by Global Finance, and ‘Bahrain’s Best Digital Bank’ by Euromoney. In addition ila, Bank ABC’s   digital mobile-only retail bank, was named the ‘Fastest-Growing Digital Bank in MENA Central’ by Mastercardand the ‘Best Digital Bank in Bahrain’ by MEED.

Moreover, the Bank was recognised for its leading role in several landmark transactions, notably ‘Global Sukuk Deal of the Year’ for the US$1 billion Sukuk issuance for Energy Development Oman and ‘Global Sukuk Deal of the Year’ for the US$1 billion Sukuk issuance for the Ministry of Finance & National Economy of the Kingdom of Bahrain. 

Bank ABC’s Group Chairman, Mr. Saddek Omar El Kaber remarked, “The Group has continued its excellent performance throughout the first half of the year, which reflects its broad- basedbusiness model that leverages market opportunities across the Group’s international franchise. The Group’s balance sheet remains healthy and robust, with strong capital and liquidity ratios. The accelerated implementation of our strategy positions the Group for additional growth momentum during the rest of the year, as we further anchor our position as “MENA’s International Bank of the Future.” 

Detailed summary of the Financial Results is explained below:

Q2 2024 Performance Highlights

▪ Consolidated net profit attributable to the shareholders of the parent, for Q2 2024 was US$75 million, 23% higher compared to US$61million reported for the same period last year. 

▪ Earnings per share for the period was US$0.024, compared to US$0.020 in the same period last year.

▪ Total comprehensive income attributable to the shareholders of the parent was affected primarily by the devaluation of Brazilian Real against the US$, and changes in the fair valuations of our bond portfolio during the quarter. Net effect of these on total comprehensive income was a negative of US$28 million compared to a positive US$110 million, reported for the same period last year.

▪ Total operating income for Q2 2024 was US$331 million, 6% higher compared to US$312 million reported for the same period last year.

H1 2024 Performance Highlights

▪ Consolidated net profit attributable to the shareholders of the parent, for H1 2024 was US$150 million, a growth of 24% compared to US$121 million reported last year, driven by a combination of core business growth across many markets, higher average asset volumes and steady cost of credit. 

▪ Earnings per share for the period was US$0.046, compared to US$0.036 in the same period last year.

▪ Total comprehensive income attributable to the shareholders of the parent was affected by the devaluation of Egyptian pound and Brazilian Real against the US$. Net impact of these on the total comprehensive income was a negative of US$56 million, compared to a positive US$109 million reported during the same period last year (when the currencies remained broadly stable).

▪ Total operating income for H1 2024 was US$674 million, 10% higher compared to US$611 million reported last year, reflecting broad based growth across almost all the core markets.

Balance Sheet

▪ Equity attributable to the shareholders of the parent and perpetual instrument holders at the end of the period was US$4,173 million, compared to US$4,300 million reported at the 2023 year-end, 3% lower after absorbing dividend payments and the impact of EGP and BRL devaluation. 

▪ Total assets stood at US$44.3 billion at the end of the period, as compared to US$43.9 billion reported at the 2023 year-end, an increase of 1% driven by core business and growth, balance sheet optimization and portfolio management actions.

▪ Healthy Capital and Liquidity ratios: Tier 1 Capital ratio at 14.5%, of which CET1 at 12.8%. LCR and NSFR at 233% and 123% respectively.

Bank ABC is a leading player in the region’s banking industry, with presence in 15 countries across five continents. It provides innovative global wholesale banking solutions in both conventional and Islamic finance, across Transaction Banking, Project and Structured finance, Capital Markets, Financial Markets, Real Estate finance to corporates and financial institutions. It also provides retail banking services through its network of branches in Jordan, Egypt, Tunisia, Algeria, and through ila Bank, its digital mobile-only bank, in Bahrain and Jordan.

The full set of financial statements and the press release are available on the Bahrain Bourse and Bank ABC websites. Further details are provided in the Investor Highlights Presentation published on Bank ABC’s website: www.bank-abc.com