1. This statement provides information on recent developments in Libya that has become available since the staff report was circulated to the Executive Board on April 3, 2007. The thrust of the staff appraisal remains unchanged.
2. On Wednesday, April 18, the Libyan authorities informed staff verbally that they have decided to freeze the implementation of the planned wage increase in the civil service (an increase of 80 percent on average) that was to take effect this month (April 2007). The government is now reviewing this issue. In the absence of more information on the government’s intentions, including the size of the wage increase and the timeframe for its implementation, staff is not yet in a position to revise its macroeconomic projections.