International Bank Warns Libyan Foreign Currency Reserves Could Finish in 4 Years Time.

Tripoli, I February 2015(Lana) The World Bank has warned that Libya's foreign reserves could run out in 4 years time, because of the ongoing crisis in the country, and the huge fall of oil prices. 'Libya's current oil production is the fifth of the level it was before the crisis at 1.6 million barrels per day, the Bank said in its Middle East quarterly economic bulletin. The fall of oil prices coupled with the decline of production has enforced the Government to use the reserves, which declined in August 2014 to $100 billion, 20% lower than the beginning of the year, and could finish in 4 years if the current trend persists, it said. Salaries place a big burden on the public treasury; whereby a quarter of the population are on the state pay list, besides that they have increased by 250% since the 2011 uprising, and without a an increase of production in sight, the Government will face difficult times meeting its obligations, it added. The Bank praised efforts by the General National Congress to cut subsidy on fuel prices, which constitute 20% of the GDP, a step which could help bridge the widening gap between spending and earnings, the report said. However, the Central Bank of Libya warned earlier in January of an acute financial crisis because of fall of oil production and the erosion of foreign currency reserves, and called on Government to take the necessary measures to offset the deficit in last year's budget and said 2015 budget will a see a deficit of $45 billion. =Lana=