Libya crisis talks held in London as economy ‘nears collapse’

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.

The World Bank has said Libya’s economy is near collapse as the civil war worsens and bank reserves plummet.

In a US-led initiative, the US secretary of state and UK foreign secretary, joined by the International Monetary Fund and World Bank, planned to urge Libya’s embattled prime minister, Fayez al-Sarraj, to enact drastic reforms.

Libya’s economy has atrophied and with oil exports down, the bulk of the 6 million-strong population depends on fast-depleting foreign reserves.

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,” the official said.