By Sami Zaptia.
London, 18 August 2020:
Libya’s Tripoli-based Central Bank of Libya (CBL) provided a LD 15.579 bn loan to the government to cover the state budget for the seven months to 31 July 2020.
Total actual state revenues came in at a meagre LD 3.346 bn compared to total outgoings of LD 19.077.
With oil production and exports blockaded since January by Khalifa Hafter and his tribal allies in Libya’s main eastern oil crescent, oil revenues came in at just LD 2.218 bn.
State-sector salaries still formed the country’s biggest outgoings at LD 10.940 bn or 58 percent of outgoings. Operational expenses were LD 1.892 bn (10 percent). Projects and development spending were a paltry LD 610 million (3 percent).
State subsidies were LD 3.312 bn (17 percent) and the Emergency Budget was LD 2.323 bn (12 percent).
Fighting the Coronavirus
The CBL reported that LD 847 were allocated to fighting the Coronavirus, of which LD 562 were allocated to the Health Ministry and LD 49 million to municipalities. LD 95 m went to the Military Health Authority, LD 35 m went to the Ambulance and Emergency Service, LD 65 m to the Medical Supply Organization and LD 41 m to embassies abroad.
Oil losses and revenues
It also reported that Libya lost about US$ 8 bn in potential oil revenues up to 31 July this year. Of the oil revenues reported for the period, it said US$ 2.871 bn were for December 2019 sales and US$ 2.218 bn were earnt for the 7 -month period. In July Libya earnt US$ 53 million from oil exports.
The Foreign Currency Sales Surcharge
Libya earnt LD 13 bn from the foreign currency sale surcharge in the period of which LD 1.225 were allocated to projects and development spending. LD 12.3 bn were used to pay of the public debt.
The National Oil Corporation (NOC) received LD 1.2 bn from the foreign exchange sales surcharge balance from 2018.
Non-oil state revenues down 50 percent
The CBL again warned that other non-oil state revenues were down by about 50 percent and urged the government to improve this.
On state subsidies, the CBL reported that the state Medical Supply Organization (MSO) received LD 496 m (excluding money for Coronavirus), LD 1.983 bn were spent on fuel subsidies, LD 360 m on electricity, LD 173 m on water and sanitation, and LD 300 m on public cleaning.
Hard currency earnings, spending and deficit
The CBL reported that the hard currency earnings for the period were US$ 3.6 bn and outgoings were US$ 9.3 bn. The deficit for the period was US$ 5.7 bn which was covered from CBL reserves.