Central Bank to Abolish Subsidies

The Central Bank of Libya (CBL) has agreed to remove direct subsidies on fuel, foodstuffs and medicines, according to a report from Libya Herald.

The changes are to be phased in from early next year over a period of a year or more, with compensating payments LD 70 being paid into the bank accounts of every Libyan over the age of 18, and an additional 50 LD if electricity subsidies are also removed.

The move is expected to hit smugglers, saving Libya the equivalent of $4 billion a year as a result of subsidised goods -- mostly fuel -- being smuggled to neighbouring countries.

Both of Libya's rival governments had previously but separately agreed to the move, which has been facilitated by the development of the national ID number system.

Libya currently spends LD 12 billion a year on subsidies.

(Source: Libya Herald)

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