(MENAFN) Libya’s eastern-based House of Representatives has passed a law aimed at managing public debt, according to parliamentary spokesperson Abdullah Blehig. The decision was made during a plenary session in Benghazi after thorough debates and incorporation of suggestions from the parliament’s Finance Committee, though some lawmakers raised objections to certain clauses.

The legislation seeks to formalize borrowing practices and promote fiscal transparency. It establishes a dedicated account to build a debt repayment reserve and restricts government borrowing, both domestically and internationally, unless permitted under the law’s provisions.

The move comes amid Libya’s escalating economic difficulties, growing public debt, and ongoing challenges in financial management since 2014, as noted by reports.

The country remains politically divided following the 2011 NATO-backed uprising that removed former leader Muammar Gaddafi, with a split between the UN-recognized Government of National Unity in Tripoli and an eastern administration supported by the Libyan National Army under commander Khalifa Haftar.

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