The Central Bank of Libya team continued its preparatory meetings for the 2025 Article IV consultations with the International Monetary Fund (IMF) experts’ mission in Tunis for the second consecutive day. Discussions focused on the Central Bank’s efforts to maintain the financial sustainability of the state despite prevailing challenges. Additionally, the meetings addressed Libya’s balance of payments, an assessment of the banking sector’s status and its key indicators considering the available monetary policy tools, along with the Central Bank’s exchange rate policy.
In accordance with its commitment to modern governance standards, the Central Bank of Libya (CBL) has taken a decisive step toward establishing sound management practices, fostering an effective regulatory framework, safeguarding the interests of banking sector stakeholders, and building trust among clients.
Recognizing that governance has become a fundamental criterion emphasized by international regulatory bodies, including those outlined by the Basel Committee on Banking Supervision, the CBL Board of Directors has approved the Banking Sector Governance Manual. This manual has been disseminated to banks via Circular No. (19) 2024, issued by the Banking and Monetary Supervision Department.
The CBL underscores the importance of strict adherence to the manual’s provisions by all banks operating in Libya. The manual establishes the minimum principles and governance standards designed to elevate the operational efficiency, accountability, and transparency of the banking sector. Key components of the updated governance framework include:
Shareholders’ Rights Supervisory Authority Board of Directors and Its Committees Governance of Islamic Banking Operations Information Technology Governance Triple Bottom Line Sustainability Disclosure and Transparency for Stakeholders
Under these guidelines, all banks are required to align their practices with the manual’s standards. A six-month transition period has been granted to ensure compliance, during which banks must adjust their governance frameworks and, where necessary, restructure their boards of directors in accordance with the expiration of members’ terms.
To access the full Banking Sector Governance Manual, please Click here.
The preparatory meetings for the 2025 Article IV consultations with the International Monetary Fund (IMF) expert mission is launched on Monday, 2nd of December, 2024, in Tunis. These consultations are conducted annually by the IMF to assess the overall economic and financial status of member states.
On the first day, and under the directives of H.E Naji Mohammed Issa, Governor of the Central Bank of Libya, the CBL team briefed the IMF mission on the measures undertaken by the Central Bank to update governance frameworks for the banking sector, evaluate the sector’s performance and key indicators, and strengthen efforts to combat AML/CFT. The team also highlighted the Central Bank’s Board of Directors’ strategy for financial inclusion, alongside the Governor’s vision for advancing digital transformation and enhancing electronic payment systems.
H.E Naji Mohammed Issa, Governor of the Central Bank of Libya held a meeting attended by some members of the Central Bank’s Board of Directors, and heads of relevant departments on Monday, 2nd of December, 2024.The meeting focused on discussing the steps taken to enhance electronic payment services in accordance with the Board of Directors’ approved strategy.
One of the key measures discussed was facilitating the advance payment of salaries by granting citizens an overdraft facility (interest-free loan) through commercial banks, provided they utilize the electronic payment tools available at these banks. This initiative aims to enable banks’ clients to access their salaries before they are disbursed by the Ministry of Finance, while simultaneously promoting awareness and adoption of electronic payment systems.
H.E Naji Mohammed Issa, Governor of the Central Bank of Libya, convened a series of consecutive meetings addressing the Central Bank’s plan for resolving cash liquidity crisis on Sunday, 1st of December, 2024. During the meetings, the Governor directed the heads of relevant departments within the Central Bank, the liquidity team, and the general managers of banks experiencing cash shortages at their branches to manage this issue in line with the Board of Directors’ approved plan. The plan aims for a gradual and comprehensive resolution of the crisis starting in January 2025.
In this regard, the Central Bank has contracted to print 30 billion LYD to be injected into the banking sector, replacing the old banknotes, which will be withdrawn smoothly according to a pre-established timeline. Additionally, the Governor emphasized the importance of enhancing and modernizing the infrastructure of banks to support the expansion of electronic payment services in line with the prepared strategy.
The meetings also resulted in agreements to increase the limits of instant payment transactions for individuals and merchants, raising the ceiling to 20,000 LYD per individual transfer and 100,000 LYD per single purchase. Furthermore, a new service was launched to facilitate corporate transfers, with a limit of one million LYD per transaction.
H.E Naji Mohammed Issa, Governor of the Central Bank of Libya met with officials from Moamalat Financial Services, as part of the Central Bank of Libya’s plan to enhance electronic services، in the presence of relevant directors from CBL on Tuesday, 19th of November , 2024.
During the meeting, the discussion focused on reducing fees imposed on the use of bank cards at POS. It was decided to reduce fees for the health, pharmaceutical, and food sectors by 73%, bringing them down from 3.75% to 1%. For other sectors, the fees were reduced by 60%, decreasing from 3.75% to 1.5%.
The meeting also agreed to simplify the process of granting POS to individuals engaged in commercial and service activities, as well as self-employed professionals. Additionally, it was decided to provide the instant payment service free of charge, contributing to the promotion of financial inclusion.
The commission rates will be periodically reviewed and re-evaluated to explore the possibility of further reductions in the future.
H.E Naji Mohammed Issa, Governor of the Central Bank of Libya, met with Prime Minister of the Government of National Unity, Mr. Abdul Hamid Dbeibah on Tuesday, 12th of November 2024. The meeting was attended by several government ministers. During the meeting, the Prime Minister extended his congratulations on the convening of the first meeting of the Central Bank of Libya’s Board of Directors and the issuance of significant decisions. The discussions covered matters related to public spending for 2024, coordination between fiscal, monetary, and trade policies, and establishing a clear, medium-term economic vision with specific objectives for the upcoming phase. An agreement was also reached on a mechanism to ensure the timely disbursement of salaries, increase coordination between the Central Bank and relevant ministries, and enhance cooperation with joint working teams.
H.E Naji Mohammed Issa, Governor of the Central Bank of Libya, held a meeting with electronic payment companies and relevant departments of CBL to monitor the progress of bank’s new strategy for enhancing electronic payment systems and infrastructure on Thursday, 7th of November, 2024. This strategy includes a short- and medium-term plan for electronic payments, the transfer of the national switch, issues related to smart cards, and increasing transaction limits.
After discussing the challenges facing the banks, the Governor issued instructions to review the commission fees on POS transactions, aiming to set service costs, including machine price and service commission. Directing the preparation of new standards and regulations to govern electronic payment companies. Requesting a clear 2025 work plan from these companies, with a well-defined timeline, specific data, and figures, and periodic follow-ups on its execution.
The Governor also called for a review of all publications issued by the banks’ Banking and Monetary supervision Department regulating electronic payments. Electronic payment companies are now required to submit monthly reports to the Central Bank, covering the number of subscribers, electronic payment transactions, prepaid card recharges, money transfers, digital wallet recharges, and bill payments.
Moreover, the companies were instructed to strengthen and develop their internal control systems to address any risks associated with electronic payment operations, subject to Central Bank evaluations, also companies were required to improve service quality to the highest standards, diversify and enhance offerings, and noted that these factors will now serve as evaluation criteria for the Central Bank of Libya.
H.E Naji Mohammed Issa, Governor of the Central Bank of Libya, held a meeting with directors of relevant departments at CBL on Wednesday, 6th of November, 2024. This meeting was to support electronic payment operations and address the challenges facing developing these services as part of the bank’s efforts. The discussion focused on the bank’s strategy for enhancing electronic payment services and overcoming obstacles faced by electronic payment companies. An agreement was reached to transfer the management and operation of the National Switch from Moamalat Company to the Central Bank of Libya, along with the development of instant payment projects (LY Pay) and (One Pay) to improve the quality and standards of electronic services with the highest international standards.
H.E. Naji Mohammed Issa, Governor of the Central Bank of Libya, met with the Head of the Libyan Audit Bureau, Mr. Khaled Shakshak on Monday 4th of November, 2024. The meeting focused on various topics, most notably the country’s economic and financial situation, areas of mutual cooperation between the two institutions, the outcomes of working groups on finalizing the Central Bank’s closing accounts for previous years, the Central Bank’s Board of Directors’ work plan, and issues related to expenditure and revenue for 2024.
During the 2024 Annual Meetings of the International Monetary Fund and the World Bank H.E. Naji Mohammed Issa, Governor of the Central Bank of Libya, along with his delegation, met on Friday, 25th of October, 2024, in Washington, D.C. With experts from IMF Mission. The Governor outlined the Central Bank’s immediate goals, which focus on bolstering the Libyan Dinar, managing the foreign exchange market, providing liquidity, and expanding the scope of electronic payment systems. Additionally, there was a consensus to continue with Article IV consultations to evaluate Libya’s economic situation, enhance the accuracy of data and key macroeconomic indicators, and assess the governance practices in the Libyan banking sector.
H.E Naji Mohammed Issa, Governor of the Central Bank of Libya, participated in the 2024 Annual Meeting of the World Bank and International Monetary Fund, accompanied by Dr. Khaled Al-Mabrouk Abdullah, Minister of Finance for the Government of National Unity. On Friday, 25th of October, 2024, in Washington, D.C.
