Asset rich Libya moves to rebuild economy

Now Reading:

Asset rich Libya moves to rebuild economy

Text size Aa Aa

For the new rulers of Libya, relaunching the country’s oil-export based economy is the priority.

To pressure Gaddafi sanctions were imposed and assets frozen by western governments, a process that is now being reversed and those same Western countries are likely to benefit economically.

Libya has appreciating assets: an estimated 46.4 billion barrels of high quality light sweet crude oil.

The World Gold Council says in July Tripoli had reserves of almost 143.8 tonnes

Last year its nominal GDP was 60 billion euros and the economy grew by 7.4 percent.

With three percent of the world’s crude, Libya’s future income is assured but the International Energy Agency says the country’s oil exports are unlikely to return to their pre-war level before 2013.

Libya’s bullion holdings at today’s price are worth close to 200 billion euros and the country’s central bank has said it has no liquidity issues.

Libya’s interim government is seeking to reassure foreign investors and has said it will honour banking licences granted by the ousted Gaddafi administration.