Reports today in the Libyan press that the IMF has hauled up the red flag on worries about prime minister Ali Zeidan’s direction of fiscal travel. They are, apparently, very not impressed.
The government’s travails, and the IMF’s concern have their recent genesis in the fact that the government just cannot get its oil terminals operating at any meaningful level. Strikes are keeping them closed, despite weekly promises that the situation is close to resolution.
Without cash flow from oil, the government has no income and therefore no funds with which to pay its employees – which makes it very difficult to maintain the loyalty of civil servants and, more importantly right now, the security forces. This was underscored last week when NATO’s secretary general confirmed that the organisation was considering a request for assistance from Zeidan.
So, it would seem, Zeidan is now about to start…
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