Ministry of Finance warns new force majeure will affect public expenditures

Ministry of Finance warns new force majeure will affect public expenditures

June 29, 2022 - 12:16
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Written By: SafaAlharathy

The Ministry of Finance has cautioned against declaring a state of force majeure in the Gulf of Sirte, indicating that it would affect public expenditures.

The NOC disclosed Monday that it is considering declaring a state of force majeure unless production and shipping at the oil fields and ports in the Gulf of Sirte are resumed.

The Finance Ministry said the matter is a concern at the state level because it concerns a primary source for financing the general treasury.

The NOC's statement mentioned that the Finance Ministry failed to transfer the allocated budget for hydrocarbons during the first half of this year, insisting that this negatively affected the export rates and the inability to meet the fuel demands.

On the other hand, the Ministry of Finance said it was bewildered by "the inaccuracy" of the NOC's data, noting that official documents showed that the allocations approved under Chapter Four, which refer to the fuel subsidy clause for January, February, March, and April for the 2022 fiscal year had been transferred to the Central Bank of Libya.

The ministry urged the NOC to report with "accuracy and professionalism," confirming that the fuel subsidy allocations for May and June are in process.

It reiterated its continued support for the NOC to achieve the highest standers of production in the oil sector.

According to the Finance Ministry, an exceptional budget estimated at 34 billion dinars had been approved for the Corporation, considering that it manages the most important sources and is attached to the livelihood of the Libyans.