Sunday, March 16, 2014
Libya could be headed towards bankruptcy
Revenue Watch, a New York-based think tank, believes Libya is heading towards bankruptcy. With ninth-largest proven oil reserves in the world and a population of 6.5 million should be a wildly prosperous nation but it is not. Two years since Muammar Gaddafi's regime fell, militias have seized control of Libya's oil production facilities.
The big problem is oil output, which has fallen to 230,000 barrels per day; before the revolution, that number was closer to 1.6 million barrels. That is a huge drop when Libya's oil and gas provides 90 percent of state revenue; in 2013, oil income brought in around $48.7bn.
http://www.aljazeera.com/programmes/countingthecost/2014/03/libya-heading-towards-bankruptcy-2014313173334276217.html
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If Libya falls to bankruptcy this is going to have repercussions on the entire middle east and a lot of the countries that rely on Libya for oil production. The Arab League as well as OPEC may need to step in at some point to try and rectify this situation otherwise there could be a lot of fallout for the people of Libya and the world.
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