Decision No. 114 of 2022 Authorizing LYD 6 Billion Loan

The House of Representatives authorizes the Central Bank of Libya to lend LYD 6 billion to the Ministry of Planning and Finance, secured by treasury bonds. The funds are earmarked exclusively to repay public debt owed by the General Treasury to the Libyan Arab Armed Forces and its affiliated entities.

This decision reveals acute fiscal stress in Libya's government finances, requiring monetary financing to satisfy military obligations. For foreign contractors and investors, this signals heightened sovereign credit risk and potential delayed payments on non-military contracts as resources are diverted to armed forces creditors. The monetization of debt through Central Bank lending may accelerate currency depreciation and inflation, affecting contract valuations and repatriation planning.