CBL LD 20 bn loan to finance Libyan budget deficit up to end Q3li

banking - October 11, 2020

The Tripoli-based Central Bank of Libya (CBL) provided loans of up to LD 20.030 bn to finance Libya’s budget deficit until 30 September 2020, it revealed in its latest statistical monthly bulletin.

It revealed that total state revenues came in at LD 3.813 bn, down LD 3.458 bn on estimates. Oil revenues for the period were LD 2.388 bn, down LD 2.112 bn on estimates. Tax revenues were LD 456 million, down LD 519 m, customs revenues were LD 102 m, down LD 198 m and state telecoms revenues were LD 82 m, down LD 218 m on estimates for the period.

CBL profits were LD 225 m, sales of local fuels brought in LD 100 m (down LD 200m), other revenues brought in LD 336 m, down LD 211 m and the Jihad Tax contributed LD 124 million.

The CBL also reported that LD 1.575 bn was allocated to finance projects/development from the foreign currency sales surcharge.

Expenditure

The latest CBL statistical bulletin up to 30 September 2020 revealed that Libya had spent LD 16.133 bn on state-sector salaries (63 percent of total budget spending), LD 2.391 bn on operational costs (9 percent), LD 352 m on projects and development (1 percent), LD 4.200 bn on subsidies (17 percent) and LD 2.538 bn on Emergency Spending (10 percent.)

This brings total spending to LD 25.614 bn leaving a surplus of LD 3.261 bn on estimates.

Coronavirus spending

The CBL reported that a total LD 966 m were allocated to combatting the Coronavirus pandemic. Of this, LD 572 went to the Health Ministry, LD 50 m to Municipalities, LD 96 m to the Military Medical Organization (MSO), LD 35 m to the Ambulance Service, LD 151 m to the Medical Supply Organization, LD 41 m to embassies abroad and LD 22 m to the Education Ministry.

Oil blockade

The CBL reported that the oil blockade imposed by Khalifa Hafter, his Libyan National Army and allied tribes has cost the Libyan state US $ 10 bn in lost revenues.

Foreign currency sales surcharge

The CBL reported that the foreign currency sales surcharge had earnt during the first 9 months of 2020 LD 15.027 bn of which LD 1.575 were allocated for projects and development and LD 13.452 bn was used to pay off some of the budget deficit.

National Oil Corporation (NOC)

The CBL reported that LD 1.26 bn were allocated to the NOC as per government decree 1080/2019’s Extraordinary Budget for the NOC to spend on maintenance and to increase oil production. This, the CBL noted, is financed through the 2018 sales of foreign currency surcharge earnings.

Low non-oil revenues

The CBL warned again in its latest bulletin, as it had in numerous previous ones, that the government should take steps to increase non-oil revenues which it said had dropped by 51 percent for the period.

State subsidies

The state subsidies disbursed by through the budget were: LD 637 m to the MSO (excluding the LD 96 m previously listed under combatting the Coronavirus pandemic); LD 2.550 bn on fuel subsidies / imports; LD 540 m on electricity; LD 173 m on water and sewage; and LD 300 m on sanitation.

The foreign currency deficit

The CBL informed that the deficit in foreign currency revenues for the period was US$ 6.976 covered by CBL reserves except for approximately US$ 7 bn in outstanding obligations in Letters of Credit (LCs) for the public and private sector.

It revealed that total foreign currency revenues were US$ 3.8 bn, of which US$ 2.051 bn were from oil revenues from 2019, whilst total foreign currency payments for the period amounted to US$ 10.776 bn.

Of the US$ 10.776 bn, US$ 6.765 bn went to local commercial banks finance the family allowance (US$ 81 m), trade finance (US$ 5.203 bn), personal transfers for study abroad, medical treatment, expat salaries, insurance etc (US$ 1.481 bn).

Government transfers were US$ 4.011 bn, including US$ 1.160 bn for foreign litigation expenses and Finance Ministry transfers. The NOC spent US$ 2.271 bn on subsidies for imported fuel and US$ 580 m were spent on LCs for other state entities.

libyaherald



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