Libya lost more than $ 23 billion because of embargo

Libya has lost more than $ 23 billion up to the end of 1997 as a result of the 6-year long embargo, according to an official report.

The sectors of health, agriculture, industry, transport and energy are the most affected, said the report that was presented on Monday in New York by Libya's representative.

The oil sector alone lost $ 5 billion due to a shortage of spare parts necessary for the maintenance of production facilities. The oil sector is also affected by the suspension of promising projects while industry and minerals incurred around $ 5.1 billion in losses, says the report which also cites problems in importation and exportation due to high maintenance costs of boats which are the cheapest transport means.

Consequently, trade and agriculture incurred losses estimated respectively at $ 6 billion and 5.2 billion while the transport sector deplores losses of $ 2.5 billion.

Regarding health, the report said 5,750 persons, including 2,000 newborns, died as a result of the embargo, and 21,000 Libyans died in road accidents caused by the degradation of roads and cars.

However, the most acute problem is a galloping inflation rate and price increases of 70 percent to 200 percent and a depreciation of the local currency, the Dinar. Now, one US dollar is exchanged at the black market for 3 dinars against one dinar in 1992.

The United Nations enforced in 1992 an air embargo against Libya, and one year later froze all Libyan assets abroad and banned Libya from importing oil industry equipment.

The sanctions were enforced to make Libya extradite two men accused of masterminding the explosion in 1988 of a PanAm plane over the Scottish village of Lockerbie.