Libya: Central Bank stops operations over kidnapping of senior official

The Tripoli-based central bank announced on Sunday that it would suspend all operations following the kidnapping of a senior official earlier that day.

The bank, which serves as the sole internationally recognized repository for Libya’s oil revenues, deemed the safety of its personnel paramount in the face of rising insecurity.

The kidnapped official, Musaab Muslam, who heads the bank’s information technology department, was taken by an unknown group, prompting an immediate response from the central bank.

In a statement, the institution condemned the “mob-like methods” employed by those operating outside the law and expressed its determination not to resume work until Muslam is safely returned. The bank further revealed that other officials had also faced threats, underscoring the precarious environment in which they operate.

The U.S. ambassador to Libya, Richard Norland, had recently warned that attempts to forcibly replace the bank’s senior management could jeopardize Libya’s access to international financial markets. Norland had met with bank governor Sadiq Kabir to voice concerns about armed groups amassing near the bank’s headquarters in Tripoli.

He emphasized that disputes over Libya’s wealth distribution should be resolved through “transparent, inclusive negotiations toward a unified, consensus-based budget,” highlighting the need for stability in the nation’s financial governance.

Libya has been embroiled in turmoil since the 2011 NATO-backed uprising that ousted longtime dictator Muammar Gaddafi. The country has been divided between rival factions since 2014, with the eastern region under the control of military commander Khalifa Haftar and the Tripoli-based Government of National Unity led by interim Prime Minister Abdulhamid al-Dbeibah, who was appointed through a U.N.-backed process in 2021.

Violence has remained a constant threat, with recent clashes further illustrating the fragility of the situation. Just last month, at least nine individuals were killed and 16 wounded during confrontations between armed factions in the Tajoura suburb of Tripoli.

The central bank’s decision to halt operations poses a grave risk to Libya’s already fragile economy, which heavily relies on oil revenues. As the situation unfolds, the potential for further unrest looms, along with the urgent need for a political resolution to unify the country’s fractured governance and restore stability.

Reuters