UN warns Libya faces economic collapse amid central bank crisis By Reuters

By Ayman Werfali, Adam Makary and Enas Alashray

TRIPOLI (Reuters) – The United Nations Support Mission in Libya (UNSMIL) issued a statement late on Monday expressing deep concern “over the deterioration of the situation in Libya as a result of unilateral decisions.”

Disputes over control of Libya’s Central Bank have raised alarms about the potential misuse of the country’s financial resources.

“UNSMIL convenes an emergency meeting for all parties involved in the Central Bank of Libya crisis to reach a consensus based on political agreements, applicable laws and the principle of central bank independence,” the statement said.

The UN mission called for the suspension of unilateral decisions, the lifting of force majeure on oil fields, a halt to escalations and the use of force and the protection of Central Bank employees.

Libya’s economy is heavily dependent on oil revenue, and there have been measures to impose force majeure on the oil fields, effectively reducing the country’s primary source of income.

Earlier on Monday, the administration in eastern Libya ordered the closure of oil fields in eastern Libya, which account for almost all of the country’s output, halting both production and exports after tensions erupted over the leadership of the Central Bank.

There was no confirmation of these actions from the internationally recognized government in Tripoli or from the National Oil Corp (NOC), which controls the country’s oil resources.