Debts pile up as rival Libyan governments struggle for power

A man counts money to buy U.S. dollars at a currency exchange in Benghazi, Libya February 4, 2019. REUTERS/Esam Omran Al-Fetori

BENGHAZI, Libya (Reuters) - Libya's parallel government in the east has sold bonds worth more than $23 billion to fund its wage bill, bypassing the central bank in Tripoli and creating a potential financial black hole if the country reunifies, bankers and diplomats said.

The eastern government's finance ministry has been selling the debt to a parallel central bank in the east and the proceeds of the sales are used to pay eastern state employees via local banks, in large part using dinars printed in Russia.