The UN Secretary-General, Ant\u00f3nio Guterres, presented a report to the Security Council addressing developments in Libya, including economic conditions, covering the period from November 28, 2025 to March 31, 2026. He noted that Libya continues to suffer from economic fragility due to ongoing governance challenges. On December 22, 2025, the House of Representatives authorized the Central Bank of Libya to settle approximately 303 billion dinars of domestic public debt using state revenue sources. The High Council of State rejected this decision, expressing concerns over a lack of financial discipline and accountability by parallel administrations.<\/p>\n\n\n\n
The report continued: The Central Bank published its 2025 financial statement on January 18, 2026, indicating that the monetary situation is generally balanced, with revenues and expenditures reaching around 137 billion dinars. However, spending remained heavily concentrated on wages and subsidies, which accounted for nearly 80% of total expenditures. Revenues from non-hydrocarbon sources remained extremely limited. A foreign currency deficit of approximately $9 billion was recorded, representing the gap between foreign currency inflows and outflows, financed through returns from the Central Bank\u2019s external assets.<\/p>\n\n\n\n
In the Libyan Audit Bureau\u2019s 2024 annual report, issued on December 31, 2025, the Bureau highlighted declining revenues and weaknesses in public financial management by the Government of National Unity. The report does not include data from eastern Libya, making it difficult to conduct a comprehensive assessment of public financial management across the country.<\/p>\n\n\n\n
The Board of the Central Bank of Libya decided to devalue the Libyan dinar for the second time in nine months by approximately 14.7%, effective January 18. The official exchange rate rose from 5.57 to about 6.37 dinars per US dollar. The Central Bank cited the continued absence of a unified budget, unsustainable growth in public spending, and ongoing duplication of expenditures as reasons for the decision. Meanwhile, the parallel market exchange rate increased from 7.2 dinars in December 2025 to 9.45 dinars in March 2026.<\/p>\n\n\n\n
Guterres also stated in his report that on December 31, 2025, the Office of the Attorney General informed the National Oil Corporation that it had filed lawsuits related to the mismanagement of fuel imports, targeting individuals and entities involved in procurement and supply practices that bypassed oversight, leading to inflated costs and substandard supplies. Instructions were also issued to the National Oil Corporation to conduct transparent, time-bound public tenders in 2026, aimed at significantly reducing excessive import premiums on diesel and gasoline.<\/p>\n\n\n\n
On December 29, 2025, the House of Representatives approved a three-year development plan worth 69 billion Libyan dinars for the Libya Development and Reconstruction Fund. On the same day, it also approved a draft law to increase salaries of Libyan National Army personnel by up to 150%. The High Council of State rejected the vote, arguing it would place additional pressure on the public budget during economic hardship.<\/p>\n\n\n\n
Wage management reforms continued, with the Central Bank of Libya accelerating the rollout of a digital platform launched in September 2025 to improve verification and transparency of public sector salary payments. On January 15, 2026, Libyan media reported that the government appointed by the House of Representatives authorized the transfer of employee data to the platform to facilitate faster salary payments. So far, the Central Bank has registered a total of 1.5 million employees from both the Government of National Unity and the parallel government out of a total public sector payroll of 2.2 million employees.<\/p>\n\n\n\n
Guterres added that during the reporting period, oil production remained stable at around 1.4 million barrels per day. From January 24 to 26, the Libya Energy and Economy Summit was held in Tripoli, with participation from several multinational energy companies. On February 11, the National Oil Corporation announced the awarding of 5 out of 20 oil and gas exploration blocks across key hydrocarbon regions to international companies and consortiums, following a public tender launched in March 2025.<\/p>\n\n\n\n
In February 2026, the Board of the National Oil Corporation issued a decision to suspend all procurement operations except for urgent needs related to safety or production, halting new financial commitments and external transfers. The Board cited the need to rationalize spending in light of the approval of \u201cless than 25% of the Corporation\u2019s 2024 budget and the absence of an approved budget for 2025,\u201d noting that these constraints impose financial pressure on operations and may affect production sustainability. The Corporation also began issuing monthly reports on oil and gas production, exports, and revenues as part of efforts to enhance transparency.<\/p>\n\n\n\n
The Secretary-General concluded his report by stating that the economic track focused on improving public financial and state resource management, reforming the subsidy system, restructuring and diversifying the economy, supporting private sector growth, and ensuring equitable development across all regions of the country. Participants benefited from exchanges with economic experts, including representatives from Libyan anti-corruption authorities, the United Nations Development Programme, and the World Bank.<\/p>\n","protected":false},"excerpt":{"rendered":"
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