Oil blockades threaten Libya’s financial security

At the end of November, prime minister Ali Zeidan warned that the government will need to borrow on the international markets to pay salaries. A blockade of most of Libya’s oil export terminals means that since July, revenues have at most been half of expected levels and production has frequently fallen below one-tenth of total capacity. According to one estimate presented to African Energy, the entire 2013 budget of about $60bn has already been spent, plus a further $20bn which remained unspent from 2012. Several sources have suggested that inroads may have been made into the Central Bank of Libya’s foreign currency reserves, although the official position is that they are untouched.