By Sami Zaptia.
London, 6 May 2020:
The Tripoli based Central Bank of Libya (CBL) reported Wednesday that Libya’s oil revenues for the period 1/1/20 to 30/4/20 were LD 1,978 bn, down LD 22 million on budget estimates of LD 2bn. Taxes brought in LD 169 m, down LD 264 on projected estimates of LD 433 m and customs duties brought in LD 35 m, down 98 m on projected LD 133 m.
Telecoms revenues inexplicably brought in zero revenues from a projected LD 133 m while CBL profits were as projected at LD 100 m. Local fuel sales brought in LD 75 m from a projected LD 133 m. Other revenues brought in LD 143 m down LD 100 m from a projected LD 243 m.
These brought in total revenues of LD 2.5 bn, down LD 675 m from a projected LD 3.175 bn. LD 700 million from the foreign currency sales levy were spent on projects, the CBL reported.
To cover this shortfall the CBL gave the Libyan government a ‘‘deficit loan’’ of LD 8.902 bn.
With regards to outgoings, state-sector salaries were as usual by far the largest single item at 65 percent of the total budget outgoings at LD 7.352 bn, but down LD 85 m on the projected LD 7.267 bn. Operational expenses (6 percent) were down by LD 619 million to LD 714 m from a projected LD 1.333 bn, and project expenditure (0.3 percent) was only LD 39 m from a projected LD 700 m – down LD 661 m.
LD 2.040 bn was spent on subsidies (18 percent) an overspend of LD 173 m on the projected LD 1.867 bn. The Emergency budget took up LD 1.201 bn (10.7 percent) from a projected LD 1.667 bn – an underspend of LD 466 m. Total spending came in at LD 11.347 bn from an estimated LD 12.834 bn – an underspend of LD 1.488 bn.
The CBL reported that it has met all financial requests from the Tripoli based Ministry of Health to deal with the Coronavirus crisis and paid all state-sector salaries for the period.
It confirmed NOC figures that the enforced political oil stoppage has cost the state in the first 4 months of 2020 losses of about US$ 5 bn. It reported that it had received oil revenues for this period of LD 4.899 bn of which LD 2.871 bn were for December 2019 sales and LD 1.978 bn were for exports for the first four months of 2020. Only LD 72 m were for the month of April.
The CBL revealed that in February this year it had received LD 228 m from telecoms revenues for 2019.
On the controversial foreign currency sales levy, the CBL said these amounted to LD 6.662 bn for the period, of which LD 700 m were used to fund the projects section of the budgets over the last four months and LD 5.92 bn for the repayment of the public debt.
The CBL warned about the decline in non-oil sources of state revenues and called on the authorities to improve these streams.
On state subsidies, the CBL reported that LD 283 m were spent on the state Medical Supply Organization (MSO), LD 1.417 bn on fuel subsidies, LD 180 m on electricity subsidies, LD 57 m on water and sanitation and LD 102 m on public cleaning.
It also reported foreign currency revenues were US$ 3.5 bn while outgoings were US$ 5.175 bn – with the deficit of US$ 1.675 bn being covered from CBL reserves. US$ 3.016 bn of foreign currency outgoings went to local banks with US$ 80 m to meet the Annual Hard Currency Family Allowance, US$ 1.503 bn for LCs, US$ 1.433 bn for private study, medical treatment abroad, Libyan salaries abroad, insurance, aviation and personal transfers.
There was also US$ 2.159 bn for government transfers, including US$ 604 m on court cases abroad and external transfers for the Ministry of Finance. Meanwhile, US$ 1.298 bn was for the National Oil Corporation to cover its imported fuel subsidies and all its other expenses and US$ 257 m for state sector LCs.