Ghassan Salame claimed that “Libya’s national debt surpassed 100 billion dinars and is spiking upwards”. He also added that expenditures on salaries proliferate as competing authorities add to an already bloated payroll.

Special Representative of The Secretary-General (SRSG) Ghassan Salame stressed that government subsidies continue to increase as the quality of services diminishes, clarifying that cuts to customs tariffs and taxes are narrowing Libya’s revenue base, making the country entirely reliant on oil exports and fees on foreign exchange.

During his speech, Salame expressed that commercial banks find it increasingly difficult to operate under the supervision of two competing central banks. For instance, a number of commercial banks, particularly in the country’s east, are now either unable to honor transactions, or will soon reach this point.

“While the Mission continues its work in order to find halfway measures and keep the economy afloat, addressing the situation requires a political solution that allows for more fundamental economic reform and institutional reform.” he stated.