3 Hrs
Source:
عين ليبيا
Economic expert highlights Libyan economic flaws
The article discusses the economic situation in Libya, focusing on the role of documentary credits and their importance in financing imports. It also highlights how reliance on oil and gas hampers exchange rate reforms and the achievement of sustainable fiscal balance. Economic expert Hosni Bay explains that the Libyan economic crisis is not solely due to credit issues but also relates to excessive public spending that exceeds sustainable levels. The payroll and subsidy bills account for about 50% of the gross domestic product, with a significant deviation of the actual exchange rate from the official rate, creating opportunities for smuggling and corruption. He emphasizes that resolving the crisis requires controlling expenditures, unifying the exchange rate, eliminating profit margins from price differentials, and redirecting subsidies directly to citizens. These measures would enable credits to serve solely as tools for commercial financing, rather than turning into a means for rent-seeking.
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