Reuters reported on Thursday that the Central Bank of Libya (CBL), which had been at the centre of a weeks-long crisis that slashed oil output, remained cut off from the international financial system.
Reporting Al-Siddiq Al-Kabir from Istanbul, Reuters has said the Central Bank of Libya’s board appointed by western Libyan factions to replace him controls the country’s internal payments system but foreign banks are not dealing with it.
“All international banks that we deal with, more than 30 major international institutions, have suspended all transactions,” he said, adding that he also remained in contact with other institutions including the International Monetary Fund, the US Treasury and JPMorgan.
“All work has been suspended at the international level. Therefore, there is no access to balances or deposits outside Libya,” he said.
According to the report, the US Treasury did not immediately respond to requests for comment. JPMorgan declined to comment, saying it could not discuss client relationships.
An IMF spokesperson said the fund was closely following developments on the Central Bank of Libya’s management and that it supports the United Nations Support Mission in Libya’s efforts to reach an agreement to end the standoff.
Al-Kabir said the board appointed by the western factions had, however, gained control over Libya’s internal transactions systems, including salary payments. He hopes to be reinstated as governor through U.N.-backed negotiations between the House of Representatives parliament in eastern Libya and the High State Council (HSC) based in Tripoli in the west, to resolve the crisis.
“According to contacts with the parliament and the High State Council, both are insistent on implementing the laws in force and the political agreement. This implicitly means the inevitable return of the governor.” Al-Kabir said.
