Libya’s public debt has exceeded 270 billion dinars, with projections indicating it could reach 303 billion dinars by the end of 2026 if current financial policies remain unchanged, according to the 2025 annual report issued by the Administrative Control Authority.
Libya’s public debt has exceeded 270 billion dinars, with projections warning it could rise to 303 billion dinars by the end of 2026 if current financial policies continue without major reforms, according to the 2025 annual report issued by the Administrative Control Authority.
The report highlighted growing concerns over the country’s financial stability amid rising public spending, persistent budget deficits, and continued dependence on central bank financing. Officials warned that Libya’s economy continues to face serious structural imbalances, particularly the widening gap between government revenues and expenditures.
According to the report, repeated reliance on domestic borrowing and monetary financing has intensified pressure on the national economy. The continued dependence on oil revenues, combined with weak diversification efforts, has increased financial vulnerability and limited the government’s ability to sustain long-term fiscal stability.
The report revealed that public debt linked to the Central Bank branch in Benghazi, affiliated with the government led by Osama Hammad, reached approximately 186 billion dinars. Meanwhile, debt associated with the Central Bank in Tripoli, linked to the Government of National Unity, stood at around 84 billion dinars.
The authority also pointed to difficulties in obtaining accurate financial data from certain institutions, particularly the Benghazi-based central bank branch. Officials warned that the lack of transparent and unified financial information limits the ability to conduct comprehensive assessments of debt risks and fiscal sustainability.
Public spending has risen sharply in recent years, increasing by more than 85 billion dinars to reach nearly 137 billion dinars in 2025. The report described this expansion as a major source of pressure on public finances and evidence of continued reliance on unsustainable financing methods.
Officials warned that maintaining the current fiscal trajectory could deepen economic risks in the coming years unless urgent corrective measures are adopted.
The report called for tighter control over spending, stronger revenue collection, greater financial transparency, and broader economic diversification to reduce dependence on oil income.
