The British newspaper “The Independent” stated in an article published on Monday, titled “The Specter of Bankruptcy Haunts Oil-Rich Libya,” that the foreign currency deficit in the Libyan state budget over the past four years has exceeded $22 billion. This deficit has been covered by the reserves of the Central Bank of Libya, putting it at risk of depletion.

The newspaper added that political division heavily impacts Libya’s economic situation, which has become increasingly fragile over the past year. Negative indicators have emerged in the periodic reports issued by the Central Bank of Libya, which revealed in its mid-year report that the foreign currency deficit has risen to over $9 billion.

The article pointed out that economic experts and analysts view this report as a serious warning, heightening fears that the country could reach the brink of bankruptcy soon. Without real political and economic measures to address the distortions in the Libyan economy, which is burdened by massive corruption, parallel government spending, and the division of economic institutions, particularly the Central Bank itself, the situation may worsen.