The Libyan parliament believes that the redistribution of the oil windfall should adapt to the new realities of the energy market, marked by a major spike in oil and gas prices.
On May 14, the Speaker of the Libyan Parliament, Aqila Saleh ordered the freezing of state oil revenues stored at the Libyan Foreign Bank (LFB) until the establishment of guarantees and a mechanism to ensure that all Libyans benefit from these revenues.
“This measure aims to preserve the interest of the Libyans and ensure that they benefit from the current high oil price, which requires continuing to pump oil and ensuring the regular operation of vital installations. , as well as to protect them against falsification, corruption and the waste of public money”, explained the leader.
The decision comes after numerous controversies over the management of oil revenues, the legal vacuum and the lack of clarity surrounding the oil windfall, in a context of deep political crisis. It is supported by Washington which, through a press release from the United States Embassy in Libya, indicated that an agreement on a mechanism for the transparent management of oil revenues is imperative to restore Libya’s oil production and revive the economy. ‘economy.
“The mechanism should incorporate an agreement on priority spending, transparency measures and steps to ensure oversight and accountability of stakeholders,” said the US diplomatic representation in the North African country.
Moreover, the United States has undertaken to provide technical assistance at the request of the Libyan parties to help set up such a mechanism. He added that progress on such important issues will help create a more stable political environment that will help restore momentum towards peaceful parliamentary and presidential elections.
The Libyan Foreign Bank was the first Libyan offshore banking institution authorized to operate internationally. It is controlled exclusively by the Libyan Central Bank.