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Libya crisis talks held in London with economy 'near collapse' Libya crisis talks held in London with economy 'near collapse'
(35 minutes later)
Britain is hosting crisis talks with Libya’s leaders in London on Monday in an attempt to ward off the collapse of the country’s war-torn economy. John Kerry and Boris Johnson are hosting crisis talks with Libya’s leaders in London in an attempt to ward off the collapse of the country’s war-torn economy.
Leaders of the embattled UN-backed government are meeting in a US-led initiative, hosted by the UK Foreign Office, as diplomats try to formulate a plan to stave off disaster. Boris Johnson, the UK foreign secretary, and John Kerry, the US secretary of state, will both attend. Libya’s economy is now “near collapse”, the World Bank has warned, as the country’s civil war worsens and bank reserves plummet.
With the country’s civil war into its third year and bank reserves plummeting, the World Bank has warned Libya’s economy is “near collapse”. In a US-led initiative, the US secretary of state and UK foreign secretary, joined by the International Monetary Fund and World Bank, will urge Libya’s embattled prime minister, Fayez al-Sarraj, to enact drastic reforms.
Six months after the new government, led by the prime minister, Fayez al-Sarraj, installed itself in Tripoli, it has yet to win popular support or get a grip on the chaos engulfing the country. Libya’s economy has atrophied and with oil exports down, the bulk of the 6 million population depends on fast-depleting foreign reserves.
Lacking a security force of his own, Sarraj has been powerless to prevent the capital’s militias indulging in an orgy of violence and kidnappings, while record numbers of migrants are being smuggled to Europe. One western official said Sarraj would be urged to mend fences with the Central Bank of Libya governor, Saddek al-Kabir, who has accused the prime minister of failing to formulate an economic policy. “It is making clear the severity of the situation and the need to act,” said the official.
Meanwhile, Tripoli is struggling with power cuts, inflation and shortages of petrol and medicines, while currency shortages have provoked riots outside banks. But some fear the window for remedial action may be closing. Six months after arriving in Tripoli, Sarraj’s Government of National Accord (GNA), appointed by a UN-chaired commission, has failed to win over the population.
Nadia Ramadan, a Tripoli resident, said: “Life is getting harder all the time. We are literally hearing loud shootings almost every night, there is no money and food inflation.” And Sarraj’s administration is one of three vying for power. In Tripoli, he is facing off against the self-declared National Salvation government, which captured the Rixos government complex in an attempted coup two weeks ago.
Chaos in the capital had been amplified by the capture two weeks ago of Sarraj’s parliament building at the Rixos hotel by a rival government that is contesting control of the capital. Meanwhile, a third government operates through the elected parliament in the eastern city of Tobruk. Tobruk forces led by the controversial general Khalifa Haftar last month seized the country’s key oil ports and while oil exports have since doubled, it has left Tobruk controlling the bulk of the oil industry.
The prime minister has failed to persuade the rival elected parliament, which has its own government in the eastern city of Tobruk, to recognise his authority.
Tobruk forces last month seized the country’s key oil ports, and while oil exports have since doubled, that production is now controlled by Tobruk.
Last week, London defence analyst Jane’s reported that Tobruk’s hand has been strengthened after its key ally, United Arab Emirates, opened an airbase to support ground troops in eastern Libya.Last week, London defence analyst Jane’s reported that Tobruk’s hand has been strengthened after its key ally, United Arab Emirates, opened an airbase to support ground troops in eastern Libya.
With the GNA unable to form a security force of its own, Tripoli is at the mercy of warring militias, with murders, kidnappings and firefights a daily occurrence.
The GNA’s single success has been an ongoing offensive by allied militias, backed by US airstrikes, which has smashed the bulk of Islamic State forces at their main base in Sirte.
But the government’s lack of authority has resulted in a surge in migrant smuggling while the capital is facing power cuts and inflation, with cash shortages provoking riots at the few banks still open.
Nadia Ramadan, a Tripoli resident, said: “Life is getting harder all the time. We are literally hearing loud shootings almost every night, there is no money and food inflation.”
US officials are conscious of the effect Libya’s chaos may have on the closely contested presidential election, with Hillary Clinton, as the former secretary of state, having overseen America’s 2011 Libya bombing intervention that toppled Muammar Gaddafi.
Barack Obama said in April that failure to follow up intervention with support for Libya’s fledgling democracy was the worst mistake of his presidency and the administration hopes to show that some progress is being made.
America’s Libya envoy, Jonathan Winer, summoned the spirit of Benjamin Franklin by urging Libyans to unite, tweeting:America’s Libya envoy, Jonathan Winer, summoned the spirit of Benjamin Franklin by urging Libyans to unite, tweeting:
But some fear that with power contested by three rival governments and a fast-disintegrating administration, economic reform may prove impossible. But some fear that with power contested by three rival governments, and a fast-disintegrating administration, economic reform may prove impossible.
“Several measures must be taken simultanously, a high level of coordination is required, but confidence in the banking system has evaporated,” said Jalel Harchaoui, a Libya analyst at the university of Paris. “Several measures must be taken simultaneously, a high level of coordination is required, but confidence in the banking system has evaporated,” said Jalel Harchaoui, a Libya analyst at the university of Paris.