Al-Kabir addressing Bin Qadara: Attributing the settlement of external debts to the Oil Corporation is a dangerous precedent and increases the confusion of the financial situation

The Governor of the Central Bank, Al-Siddiq Al-Kabir, objected to a proposal to assign financing for the settlement of debts of Libyan parties for the benefit of the Tunisian state to the National Oil Corporation.

Al-Kabir, in a letter to the head of the National Oil Corporation, considered this proposal a dangerous precedent that conflicts with the state’s financial law, and all principles of dealing with public finance, and constitutes a dangerous precedent that increases the Libyan financial situation.

Al-Kabir said that there is no meaning for the Oil Corporation to assume the duties of the Ministry of Finance, and there is no justification for excluding the Audit Bureau from performing its role.

Al-Kabir stressed that the Central Bank, as the state bank, is interested in ensuring compliance with what the Audit Bureau and the Ministry of Finance insist on, namely preserving sovereign revenues and depositing them in the Ministry of Finance’s account with the bank, so that the Ministry of Finance is responsible for paying all the obligations of the entities it is affiliated with, including the General Electricity and Lines Company. Libyan and African.

Al-Kabir pointed out that this mechanism was not the subject of discussion at the meeting held at the headquarters of the Central Bank of Libya at the end of last January.

Al-Kabeer added that the mechanism proposed by the institution, in addition to its violation of the law, does not find any acceptable justification, and will be an additional reason to further confuse the financial situation.

In December 2022, Dabaiba pledged to pay the debts owed by the Libyan state to Tunisia, amounting to $250 million.