News / Economy

    Central Bank: Lost Oil Revenues Cost Libya $30B

    Pipelines are seen at the Zueitina oil terminal in Zueitina, west of Benghazi April 7, 2014. Pipelines are seen at the Zueitina oil terminal in Zueitina, west of Benghazi April 7, 2014.
    x
    Pipelines are seen at the Zueitina oil terminal in Zueitina, west of Benghazi April 7, 2014.
    Pipelines are seen at the Zueitina oil terminal in Zueitina, west of Benghazi April 7, 2014.
    Reuters
    Libya has lost $30 billion due to 10 months of protests at oilfields and export terminals but has sufficient foreign currency reserves to keep the country running, a central bank official said.

    A wave of protests at oil facilities has reduced the North African country's oil output to less than 200,000 barrels a day down from 1.4 million bpd in July before the strikes started.

    The protests are part of wider turmoil in the North African country since the overthrow of Moammar Gadhafi in 2011. The government is unable to control militias and armed tribesmen who helped oust Gadhafi but now seize oilfields or state institutions at will to make political or financial demands.

    “The damages the state has now suffered after more than 10 months, Libya has lost not less than $30 billion,” Musbah Alkari, director of the central bank's reserves department, told Reuters. Reserves are currently around $110 billion, down from around $130 billion last summer when protests started.

    The situation could get worse in the next few days.

    State oil firm National Oil Corp (NOC) said on Wednesday that it might be forced to use crude from its two offshore oilfields, so far unaffected by protests, to feed a domestic refinery. That could mean Libya stops exporting oil for the first time since 2011.

    Alkari said Libya was currently earning around $1 billion each month in oil revenues, having brought in between $4 billion and $5 billion a month before the oil protests started.

    Oil and gas exports are the only source of revenue for the country's $50 billion budget and to fund food purchases and other imports worth $30 billion, as Libya has no sizeable industrial production outside the oil sector.

    “The reserves will [cover the budget and imports] for three and a half years ... [but] we want suitable solutions for these problems,” he said.

    Alkari said there needed to be a political solution for the oil crisis but did not elaborate.

    A rebel group in eastern Libya has seized several oil export ports to press for financial demands and regional autonomy.

    The government signed an agreement in April with the rebels to reopen the ports but implementation has been slow due to mutual distrust. The rebels have refused to deal with the new premier Ahmed Maiteeq who was elected by parliament in a chaotic vote disputed by some lawmakers.

    Alkari said the central bank had diversified its foreign currency reserves, which are split between cash, short-term deposits, foreign bonds and equity stakes in banks and insurers.

    Discussing the bank's little-known investment strategy, he said it favored dollar bonds such as U.S. Treasuries as its oil is sold in dollars. It also holds sovereign or other highly rated bonds from European countries and stakes in companies including Italy's UniCredit, a Gulf lender and insurers.

    “We have a good mix geographically and in terms of risks,” Alkari said. The bank still buys overseas assets sometimes “but less than before.”

    “We receive $1 billion [a month] in this hand, but in the other hand we pay $3.6 billion so how can we invest new money?” Alkari said.

    You May Like

    Video As Refugees Perish, Greek Graveyards Fill

    Before burial at overflowing cemeteries, unidentified dead being swapped for DNA, in case some day relatives come to learn their fate

    Russian Opposition Leader Sues Putin for Conflict of Interest

    Alexei Navalny tells VOA in exclusive interview why transfer of $2 billion from country’s wealth fund to company with ties to President Putin’s son-in-law triggered lawsuit

    How Diversity Has Changed America

    Over the past four decades, the level of diversity in the United States has increased most in these four states

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    As Refugees Perish, Greek Graveyards Filli
    X
    Hamada Elsaram
    February 11, 2016 8:01 PM
    Aid workers on the Greek island of Lesbos say they are struggling to bury the increasing number of bodies of refugees that have been recovered or washed up ashore in recent months.  The graveyards are all full, they say, yet as tens of thousands of people clamor to get out of Syria, it is clear refugees will still be coming in record numbers. For VOA, Hamada Elrasam reports from Lesbos, Greece.
    Video

    Video As Refugees Perish, Greek Graveyards Fill

    Aid workers on the Greek island of Lesbos say they are struggling to bury the increasing number of bodies of refugees that have been recovered or washed up ashore in recent months.  The graveyards are all full, they say, yet as tens of thousands of people clamor to get out of Syria, it is clear refugees will still be coming in record numbers. For VOA, Hamada Elrasam reports from Lesbos, Greece.
    Video

    Video To Fight Zika, Scientists Target Mosquitoes

    Mosquitoes strike again. The Zika virus outbreak is just the latest headline-grabbing epidemic carried by these biting pests, but researchers are fighting back with new ways to control them. VOA's Steve Baragona takes a look.
    Video

    Video Mosul Refugees Talk About Life Under IS

    A top U.S. intelligence official told Congress this week that a planned Iraqi-led operation to re-take the city of Mosul from Islamic State militants is unlikely to take place this year. IS took over the city in June 2014, and for the past year and a half, Mosul residents have been held captive under its rule. VOA's Zana Omar talked to some families who managed to escape. Bronwyn Benito narrates his report.
    Video

    Video Scientists Make Progress Toward Better Diabetes Treatment, Cure

    Scientists at two of the top U.S. universities say they have made significant advances in their quest to find a more efficient treatment for diabetes and eventually a cure. According to the International Diabetes Federation, the disease affects more than 370 million people worldwide. VOA’s George Putic reports.
    Video

    Video NATO to Target Migrant Smugglers

    NATO has announced plans to send warships to the Aegean Sea to target migrant smugglers in the alliance's most direct intervention so far since a wave of people began trying to reach European shores.
    Video

    Video Russia's Catholics, Orthodox Hopeful on Historic Pope-Patriarch Meeting

    Russia's Catholic minority has welcomed an historic first meeting Friday in Cuba between the Pope and the Patriarch of Russia's dominant Orthodox Church. The Orthodox Church split with Rome in 1054 and analysts say politics, both church and state, have been driving the relationship in the centuries since. VOA's Daniel Schearf reports from Moscow.
    Video

    Video Used Books Get a New Life on the Streets of Lagos

    Used booksellers are importing books from abroad and selling them on the streets of Africa's largest city. What‘s popular with readers may surprise you. Chris Stein reports from Lagos.
    Video

    Video After NH Primaries All Eyes on South Carolina

    After Tuesday's primary in New Hampshire, US presidential candidates swiftly turned to the next election coming up in South Carolina. The so-called “first-in-the-South” poll may help further narrow down the field of candidates. Zlatica Hoke reports.
    Video

    Video US Co-ed Selective Service Plan Stirs Controversy

    Young women may soon be required to register with the U.S. Selective Service System, the U.S. government agency charged with implementing a draft in a national emergency. Top Army and Marine Corps commanders told the Senate Armed Services Committee recently that women should register, and a bill has been introduced in Congress requiring eligible women to sign up for the military draft. The issue is stirring some controversy, as VOA’s Bernard Shusman reports from New York.
    Video

    Video Lessons Learned From Ebola Might Help Fight Zika

    Now that the Ebola epidemic has ended in West Africa, Zika has the world's focus. And, as Carol Pearson reports, health experts and governments are applying some of the lessons learned during the Ebola crisis in Africa to fight the Zika virus in Latin America and the Caribbean.
    Video

    Video Smartphone Helps Grow Vegetables

    One day, you may be using your smartphone to grow your vegetables. A Taipei-based company has developed a farm cube — a small, enclosed ecosystem designed to grow plants indoors. The environment inside is automatically adjusted by the cube, but it can also be controlled through an app. VOA's Deborah Block has more on the gardening system.
    Video

    Video Illinois Voters Have Mixed Emotions on Obama’s Return to Springfield

    On the ninth anniversary of the launch of his quest for national office, President Barack Obama returned to Springfield, Illinois, to speak to the Illinois General Assembly, where he once served as state senator. His visit was met with mixed emotions by those with a front-row seat on his journey to the White House. VOA's Kane Farabaugh reports.
    Video

    Video Exhibit Turns da Vinci’s Drawings Into Real Objects

    In addition to being a successful artist, Renaissance genius Leonardo da Vinci designed many practical machines, some of which are still in use today, although in different forms. But a number of his projects were never realized — until today. VOA’s George Putic reports.
    Video

    Video Heated Immigration Debate Limits Britain’s Refugee Response

    Compared to many other European states, Britain has agreed to accept a relatively small number of Syrian refugees. Just over a thousand have arrived so far -- and some are being resettled in remote corners of the country. Henry Ridgwell reports on why Britain’s response has lagged behind its neighbors.
    Video

    Video Russia's Car Sales Shrink Overall, But Luxury and Economy Models See Growth

    Car sales in Russia dropped by more than a third in 2015 because of the country's economic woes. But, at the extreme ends of the car market, luxury vehicles and some economy brands are actually experiencing growth. VOA's Daniel Schearf reports from Moscow.

    World Currencies

    EUR
    USD
    0.8812
    JPY
    USD
    112.18
    GBP
    USD
    0.6939
    CAD
    USD
    1.3961
    INR
    USD
    68.436

    Rates may not be current.