The UN warns that Libya is facing an economic collapse amid a central bank crisis

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

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

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

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

Libya’s economy is heavily dependent on oil revenues, and steps have been taken to impose force majeure on oil fields, effectively cutting off the country’s main source of income.

Earlier on Monday, the eastern Libya-based government ordered the closure of eastern Libya’s oil fields, which account for almost all of the country’s production. Both production and exports were halted after tensions flared over the Central Bank’s leadership.

There has been 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 supplies. – Reuters