By Sami Zaptia.
London, 8 June 2020:
The Tripoli-based Central Bank of Libya (CBL) granted the internationally recognized government in Tripoli a loan of LD 11.128 bn to cover its LD 11.366 bn 2020 budget deficit. The news was revealed in the CBL’s latest economic bulletin up to 31 May 2020.
The CBL revealed that oil revenues were a paltry LD 2.102 bn for the five months until end of May with total revenues coming at LD 2.780. Except for CBL profits (LD 125 m) and Telecoms revenues (still mysteriously at zero), all tax (LD 177 m), customs (LD 37 m), local fuel sales (LD 75 m) and other revenues (LD 181 m) were down on projections. The foreign currency sales levy earnt LD 875 m.
Total outgoing came in at LD 14.146. State-sector salaries were responsible for 65 percent of total budget outgoings LD 9.153 bn, operational costs came in at (7 percent) LD 969 m, projects (0.3 percent) at LD 39 m, state-subsidies (15.7 percent) at LD 2.228 bn and the emergency budget (12 percent) at LD 1757 bn.
The CBL said that the Libyan state had lost in this financial period about US$ 6 bn in oil revenues due to the oil stoppage imposed by the Khalifa Hafter forces/allies on the eastern oilfields. And while oil revenues for the first five months were LD 2.102, there were only LD 124 m received in the month of May.
It also said it made available LD 481 for spending on tackling the Coronavirus pandemic, which included US$ 163 m in LCs.
The CBL noted that it had not received any revenues from the telecoms sector for all of 2020. Libya Herald asked the state telecoms holding company (LIPTIC) for a comment but has received no response.
With regards to the LD 8.328 bn earnt from the foreign currency sales levy, the CBL said LD 875 were spent on projects and LD 7.453 bn were used to cover the state’s public debt.
The CBL noted the extremely low revenues accrued from non-oil sectors such as taxes, customs etc and urged the state to improve its earnings from these.
Of the LD 2.228 bn spent on state subsidies, the CBL said LD 354 went to the state Medical Supply Organization (MSO), LD 1.417 bn on fuel subsidies, LD 240 m on electricity, LD 115 m on water and sewage, LD 102 on public cleaning.
The CBL also revealed that the foreign currency deficit for the period was US$ 2.772 which was covered from CBL reserves.