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Libya adopts $48bn 2014 budget

A worker maintains oil pipelines at the Zueitina oil terminal in Zueitina, west of Benghazi April 7, 2014 Image copyright Reuters

Libya's interim parliament has adopted a 2014 budget worth $48bn (£28bn), after delays due to the unrest that has plagued the country.

The official Lana news agency said the budget was based on an oil price of $100 per barrel, with production of 800,000 barrels per day.

It forecast a deficit of $8 billion.

Libya's oil-dependent economy has been struggling since the 2011 uprising that toppled dictator Muammar Gaddafi.

Rebels blockaded oil export terminals last year, hurting the economy.

Contraction

Their seizure of four terminals slashed output from 1.5 million barrels per day to just 200,000 barrels per day.

Libya, which relies on oil for 96% of its gross domestic product, says the blockade has cost the country more than $14 billion in lost revenues.

An International Monetary Fund-World Bank assessment on Libya this year forecast that a contraction of gross domestic product that reached 5.3% last year would widen to 8% in 2014.

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