Fiscal Year 2026
Capacity Development Activities
Central Bank Operations
Domestic Liquidity Management under an Exchange Rate Peg (May 4-8)
The Central Bank of Libya (CBL) faces challenges including operationalizing the reunification of the West and East central bank, fiscal dominance, and widening parallel exchange rate market premium. The mission recommended completing without delay CBL’s monetary policy framework with an active domestic monetary policy implementation. This includes absorbing excess liquidity by issuing an interest-bearing liquidity absorbing instrument in line with prevailing Islamic finance regulations.
Financial Supervision and Regulation
Diagnostic on technical assistance needs in regulation and supervision (July 24-28)
The Central Bank of Libya (CBL) is committed to enhancing the regulatory and supervisory framework of the Libyan banking sector. This initiative seeks to modernize the banking industry in accordance with international standards and best practices. CBL partners with METAC to support this transformation, commencing with a diagnostic assessment to identify and prioritize the banking sector’s technical assistance requirements. The objective is to establish a clear timeline and prioritize delivering short- and medium-term technical assistance.
Real Sector Statistics
Rebasing the national accounts (July 6-10)
METAC conducted a follow-up mission involving seven compilers from the statistical office and six researchers from the Central Bank of Libya to improve the GDP coverage for 2022. The mission trained officials on key concepts to better measure informal activities, discussed recommendations with the Head of National Accounts, and agreed on a workplan to produce a new national accounts benchmark for 2022 by 2027.
Revenue Administration
Advancing Legal Reform: Drafting Libya’s Tax Procedures Code (July 18-27)
As part of a three-phase initiative to modernize Libya’s tax administration, the July mission marked the second phase of support to the Libyan Tax Authority (LTA) in developing a comprehensive Tax Procedures Code (TPC). This phase focused on drafting the TPC, building on the diagnostic work completed in Phase 1 during February 2025. The METAC team, working jointly with the IMF’s Legal Department (LEG), engaged in desk-based drafting activities to produce a simple yet comprehensive TPC that consolidates and harmonizes administrative provisions across core taxes, including income tax and stamp duty. The draft code reflects international good practices and is tailored to Libya’s institutional context, improving procedural clarity and transparency, taxpayer compliance, and administrative efficiency. The draft code will be presented to the Libyan authorities during Phase 3, when it will be reviewed, discussed, and finalized.
