The Address | Benghazi – Libya
TRIPOLI – The Governor of the Tripoli-based Central Bank of Libya (CBL), Siddiq al-Kabir, accused the Tripoli-based Government of National Accord (GNA) of being involved in wasting public money, warning of the collapse of the state’s financial and monetary stability due to the high record of the total public debt.
Al-Kabir said, in a hearing before the parallel parliament in Tripoli, that the total spending during the term of GNA during the years 2016-2020 amounted to about 241 billion dinars, compared to oil revenues of 96 billion dinars. In contrast, the total spending of previous governments during 2012-2015 was about 211 billion dinars, compared to revenues of 150 billion dinars.
Al-Kabir considered the necessity of adopting an urgent rescue package that begins with ending the state of political divide and developing a comprehensive national vision for the Libyan state within a specific time frame.
He added that consumer spending represented 99 percent of total general spending, while development spending was only 1 percent in 2020.
Al-Kabir accused GNA Finance Ministry of failing to collect non-oil sovereign revenues from customs, taxes, services, fees, communications and others, pointing out that the deficit amounted to about 51 percent compared to a deficit of 45 percent in 2019 and a deficit of 58 percent in 2018.
The Governor explained that the size of the total public debt rose to more than 270 percent of GDP, a record rate that is not sustainable and leads to the collapse of the state’s financial and monetary stability.
He pointed to a 55 percent contraction of GDP in 2020, noting that oil revenues for last September amounted to $35 million, compared to $2 billion in September 2019.