Central Bank Crisis Reveals Structural Defect in Libya's Political Landscape
Disputes over power and constitutional issues form a major obstacle to achieving stability in Libya, necessitating effective international intervention to break the ongoing conflict cycle
October 9, 2024, 9:38 pm

Central Bank Crisis Reveals Structural Defect in Libya's Political Landscape

ليبيا \ تعبيرية \ متداول

Stephanie Khoury, Acting Head of the United Nations Support Mission in Libya, stated that the recent crisis at the Central Bank has highlighted the fragility of the country's political process and the depth of division plaguing state institutions. She emphasized the need to end this deteriorating situation.

In her briefing to the UN Security Council on Wednesday, Khoury reported that unilateral actions by Libyan political parties "led to instability and had negative repercussions on the general situation in the country."

Recently, the Presidential Council's decision to change the governor of the Central Bank in Tripoli sparked a political dispute that led to the closure of oil facilities and the cessation of production and export operations. However, these tensions ended after reaching an agreement on appointing new leadership for the bank.

In this regard, Khoury appealed to Libyan leaders to take additional steps following the resolution of the Central Bank crisis and to cooperate in reaching a comprehensive political settlement in a spirit of consensus, aiming to ensure the independence of state institutions and avoid exploiting the country's resources for political gains.

The UN envoy addressed the ongoing disputes and conflicts over power and constitutional issues, such as the parliament's demand to dismiss the Government of National Unity and the issue of establishing a constitutional court in Benghazi, considering these actions as a source of tension in the country that deepens existing divisions.

Khoury affirmed that "the current situation has dragged on for too long, and the Libyan people deserve better than this," calling on the international community and the United Nations to make efforts to manage the crisis in Libya and reach a radical and comprehensive solution in the country.

For some time, the political process in Libya has faced a state of stagnation, with failure to reach a solution due to power struggles and legal disputes related to elections. This situation reveals the magnitude of challenges obstructing the path to consensus and understanding among the country's leaders and highlights the numerous obstacles standing in the way of resolving the crisis.

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.