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Oil blockade could plunge Libya into budget deficit, Finance Ministry says

The Ministry of Finance of the Government of National Accord (GNA) has warned that if the ongoing oil blockade lingers any longer, there could be a devastating financial impact on the country.

The GNA’s Ministry of Finance said in a statement on Sunday that the halt of oil production and exports could take Libya back to experiencing deficits in state budget and expenditures without the oil revenue.

The Ministry of Finance also indicated that cutting expenditures, which wasn’t a choice for the government before the oil blockade, is now a pressing necessity in order to limit the impact on Libya’s state foreign currency reserves.

Khalifa Haftar’s loyalists blocked oil production and exports in last January in order to use it as a leverage for Haftar as he was going to engage in political talks in Berlin conference.

However, after about two months, no local or international powers have managed to coerce Haftar or even coax him into reopening oil ports and fields, which are the only viable source of income to the country and millions of Libyans.

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