Mar 10, 2011
| Last Updated
As an oil exporter with high government savings, Libya’s fiscal position is ostensibly strong, but the decline in oil output and freezing of past assets due to a state of near civil war in the country could lead to a quick deterioration of its finances. In fact, prior to the outbreak of the rebellion against Col. Muhammar Qadhafi, the government’s sluggish spending meant that oil proceeds piled up in the Libyan central bank. Today, we see two main risks to Libya’s fiscal position from the recent revolt.
- Oil Production Disruptions: Concerns stemming from the country’s disrupted[...]
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