Eastern Libya commander Khalifa Haftar has thrown much of his military forces in...
TRIPOLI - Eastern Libya commander Khalifa Haftar has thrown much of his military forces into attacking Tripoli, but the outcome of the offensive could be determined by a separate battle — to keep open the parallel finance system that funds his soldiers.
But diplomats and banking sources say that those sources of support might be closing, as the Tripoli-based central bank, which controls the country’s energy revenues, has taken steps to curtail the operations of banks in the east. There is no public data on the costs of Haftar’s war, but he has sent more than 1,000 troops west plus support staff like drivers or medics, military sources and residents said.
In November, the House of Representatives allied to Haftar approved a law to set up a military investment authority which gives the LNA control — like in Egypt — of parts of the economy including civilian activities such as scrap metal. The Tripoli central bank has vowed to stay neutral and but diplomats say it is also helping Serraj, approving his plans to allocate some 2 billion dinars for his own war effort.There has been a banking crisis building up all across Libya and especially in the east, where three eastern banks have struggled to keep a required 20 percent of customers’ deposits at the Tripoli central bank: They have been paying out more hard currency in recent months, but need to balance accounts.
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