The Central Bank of Libya (CBL) has recently declared that corruption, collapsing oil income, the almost total failure of customs collections, and the rising cost of food subsidies would lead the country toward a major financial crisis, reported Libya Herald.
As of November, Libya’s oil income reached LYD 19.2 billion, although it had stood at LYD 59.1 billion by the end of 2013.
The CBL has requested a firm action against corruption, particularly over the large number of state-sector paid the people who already have other jobs, questioning the sustainability of subsidies for food and fuel.
According to Libya Herald, “The CBL has said that it is reluctant to drawn down on its foreign currency reserves. The Bank’s problems are being compounded by the falling international oil price, which is reducing its US dollar income. However against this is the falling value of the Libyan Dinar against hard currencies.”
Photo Credit: Arabianeye-Reuters
As of November, Libya’s oil income reached LYD 19.2 billion, although it had stood at LYD 59.1 billion by the end of 2013.
The CBL has requested a firm action against corruption, particularly over the large number of state-sector paid the people who already have other jobs, questioning the sustainability of subsidies for food and fuel.
According to Libya Herald, “The CBL has said that it is reluctant to drawn down on its foreign currency reserves. The Bank’s problems are being compounded by the falling international oil price, which is reducing its US dollar income. However against this is the falling value of the Libyan Dinar against hard currencies.”
Photo Credit: Arabianeye-Reuters
Source:
Mubasher
