Libyan Central Bank Governor Sadiq Al-Kabir called for an immediate resumption of oil operations to shore up the economy amid an unprecedented decline in monetary reserves.
“the general debt of the state reached a record high of 270% of the Gross Domestic Product (GDP)… Libyan oil revenues dropped dramatically from 53.2 billion dollars in 2012 to almost (Zero) 2020.” AL-Kabir said at a forum that centered around a discussion on Libya’s economic situation.
Al-Kabir added that Libya’s economic situation that should work immediately to increase oil output to reach 1.7 million barrels per day to cover the basic expenditures of the state.
“Shutting down the country’s oil operations repeatedly from 2013-2020 has generated about $180 billion in losses,” Al-Kabir said.
Al-Kabir warned of a financial collapse due to the increased general debt of the state, and of the suspension of oil production and exports, which he said would be catastrophic to the state amid the unprecedented decrease of CBL reserves and plummeting oil prices globally.
He also indicated that Libya should work immediately to increase oil output to reach 1.7 million barrels per day to cover the basic expenditures of the state.
The CBL governor remarked that the efforts of the CBL and Audit Bureau led to a decrease in 2020 monetary arrangements from 51 billion dinars proposed by the Ministry of Finance with 40 billion dinars deficit to 38.5 billion dinars – a decrease of 13 billion and deficit of 27 billion.