The recent data issued by the Central Bank of Libya in the capital, Tripoli, showed that the public debt this year is about 84 billion dinars (about $60 billion), or the equivalent of 260 percent of the gross domestic product.
According to the Central Bank, the rate is not sustainable, indicating that the persistence of public debt will lead to a decrease in economic growth rates and negatively affect the private sector. Disclosing the granting of a loan of 26.7 billion Libyan dinars (one dollar = 1.4 dinars) to cover the general budget for the current year due to the closure of the oil fields last January.
Since 2013, the Central Bank of Libya has provided loans to the state's executive apparatus to cover its expenditures, and that is why the domestic public debt has increased in recent years, despite paying 16 billion dinars from the proceeds of foreign exchange sales fees to extinguish the public debt.
The Presidential Council of the Government of National Accord had reduced the general budget, or what is known as financial arrangements, in Libya for the year 2020, to 38 billion dinars (about 27.14 billion dollars), with a deficit of about 23 billion dinars (about 16.5 billion dollars). Oil revenues represent more than 90% of budget revenues, and have declined significantly due to the closure of fields and ports.
Source (Al-Araby Al-Jadeed Newspaper, Edited)
