Authorization for Ministry of Finance to Withdraw from Trusts and Deposits Account

The Council of Ministers authorized the Ministry of Finance to withdraw LYD 380 million from the Trusts and Deposits account to cover basic pension entitlements for June, July, and August 2022. This withdrawal addresses a three-month backlog in pension payments.

This decision signals ongoing liquidity pressures within Libya's public finance system and highlights the government's prioritization of social obligations over other expenditures. Foreign operators should note that pension arrears required extraordinary funding mechanisms outside the approved 2022 budget framework (Decision 425/2022), indicating fiscal stress. While not directly impacting private sector operations, sustained pressure on government finances may affect contract payments, subsidy regimes, and the overall business environment through delayed procurement settlements or adjustments to fiscal policy.