CBL Eastern Governor Hibri to Retire Due to Lack of Funding and Security for His Bank Employees |
Through Sami zaptia.
London, March 4, 2021:
The governor of the Eastern Central Bank of Libya, Ali Hibri, submitted a request to the head of the House of Representatives (HoR), Ageela Saleh, asking that he be allowed to retire, the agency reported yesterday. official press of eastern state LANA.
In his widely circulated letter to Saleh, Hibri said he had reached the legal retirement age in accordance with Central Bank regulations.
In his letter, Hibri said that the reason for his resignation was due to the persistent lack of financing capacity due to the state’s dependence on one source, which is “oil and gas”, which, a- he added, makes it impossible to obtain financing because the public debt has reached a level which makes debt maintenance economically detrimental to the banking sector and at the macroeconomic level.
Hibri added that the difficulty of continuing funding and the high pressure on the bank’s management have become difficult to deal with due to the lack of security protection for the bank and its employees.
Hibri’s demand for retirement has been interpreted by analysts on several levels.
End of the road?
On the one hand, he may have decided that he will not be appointed governor of a unified CBL and that he may find it unacceptable to simply be a deputy governor or a member of the board of directors of the CBL. He is also unpopular in Tripoli for indirectly allowing eastern-based banks to help finance Khalifa Hafter’s war in Tripoli. Thus, he may prefer to retire at this time in an attempt to maintain a certain dignity.
Pressure to increase the debt of the East?
Others believe he is under increasing pressure to allow eastern banks to grant more loans to the government of eastern Libya led by Prime Minister Abdalla Thinni. This may include pressure from Hafter’s Libyan National Army (LNA) or aligned militias.
Hibri addressed the issue of the east’s huge, unsustainable deficit.
Audit of the UN CBL and the deficit of eastern Libya
Hibri could also be an anticipation of the UN audit report which will show he oversaw the build-up of a huge deficit in the east. Some of that money may have been poorly spent and fingers may be pointed at it.
But there is also the growing lack of security in the east as the ANL may begin to fall apart. A recent social media video allegedly of the beating of the Toyota car dealership office in eastern Libya by LNA-aligned forces (ICC wanted Mahmoud Warfaly?) Is cited as another example.
On the other hand, Hibri could simply use his threat of resignation to attract more security from the authorities in eastern Libya.
Anyway, this is not a good sign for eastern Libya as it is seen as the mainstay of the struggle in the east against the Tripoli CBL.