Today, the governor of the internationally recognized Central Bank of Libya, Al-Siddiq Al-Kabeer, warned of the collapse of the financial and monetary stability of the state due to the record high overall public debt.
“Libya Al-Ahrar” channel quoted Al-Kabeer as saying during a briefing session at the headquarters of the Libyan House of Representatives held today in the capital, Tripoli, that the stumbling of the Libyan economy is due to the poor performance of the government, along with the arbitrary closure of oil, the political division in state institutions and the emergence of a parallel bank, according to the “German” .
He pointed out that the total public debt rose to more than 270 percent of the gross domestic product, describing this rate as “standard and unsustainable.”
He added that the Libyan oil revenues decreased in an unprecedented record from $ 53.2 billion in 2012, and approached zero in the current year, which thwarted the achievements of economic treatments in 2018-2019. He pointed out that the arbitrary suspension of oil production and export during the years 2013-2020 resulted in losses. The state is worth more than $ 180 billion, pointing out that the continued halting of oil and its export has catastrophic consequences for the Libyan state in light of the collapse of its prices in global markets and the unprecedented decline of the reserves of the Central Bank.
He indicated that ensuring the state’s financial sustainability requires immediate action on the reproduction and export of oil and the need to raise production to 1.7 million barrels per day to cover basic management expenses.
Al-Kabeer explained that the efforts of the Central Bank of Libya and the Audit Bureau resulted in reducing the total financial arrangements for 2020 from 51 billion dinars to 38.5 billion, with a deficit of about 27 billion dinars.
He accused the Ministry of Finance of the Government of National Accord of failing to collect non-oil sovereign revenues, stating that the deficit in collecting these revenues amounted to about 51 percent.
It is noteworthy that the Central Bank of Libya has divided itself into two banks, the first in Tripoli headed by “Al-Siddiq Al-Kabeer”, and the second in the eastern city of Al-Bayda, headed by Ali Al-Habari.
The bank’s split came after the House of Representatives in Tobruk removed al-Kabir in 2014, and al-Habri assumed his position.
The Libyan House of Representatives was also divided into two chambers last year during the war in Tripoli. The first assembly is held in the eastern city of Tobruk headed by “Aqila Saleh”, and the second in Tripoli, headed by “Hammouda Siyala.”
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